'Market confidence in GNU is unwinding in front of our very eyes' – economist
Dr Kenneth Creamer argues that, while South Africa's budget process has traditionally been a credible part of the country's governance, this year ‘it's become extremely shambolic and crisis-ridden’.
FILE: Newly sworn-in Cabinet ministers pose for a photo with Chief Justice Raymond Zondo and President Cyril Ramaphosa on 3 July 2024. Picture: GCIS
CapeTalk's John Maytham interviews Dr Kenneth Creamer, an economist at the University of the Witwatersrand.
Listen below:
According to Creamer, the discourse surrounding the budget is a reflection of the increasingly misnamed Government of National Unity (GNU).
RELATED: 'ANC must decide whether to keep DA in GNU' – political analyst
Creamer attributes this decline to a poor transition from one ruling party to the current GNU.
"It's quite a serious situation domestically."
- Dr Kenneth Creamer, Economist – University of the Witwatersrand
When the GNU was initially introduced, it was well-received by the markets; the rand strengthened, investor confidence grew, and long-term interest rates fell.
However, Creamer notes that we are now witnessing 'that unwinding in front of our very eyes' as the internal divisions within the GNU become more apparent.
Regardless of how the GNU ultimately unfolds, Creamer emphasises that it is crucial for growth to remain central to the government’s agenda if South Africa is to stay on track.
"We can't allow this chaotic, shambolic political engagement to destabilise that."
- Dr Kenneth Creamer, Economist – University of the Witwatersrand
Scroll up to the audio player to listen to the interview.