-
SA R100 notes
Markets have reacted positively to the Medium-Term Budget Policy Statement (MTBPS) but analysts caution that the optimism is mostly short-term.
The rand edged up a third of a percent against the dollar at the close of trade as investors welcomed Treasury’s commitment to fiscal consolidation.
Finance Minister Enoch Godongwana delivered the MTBPS earlier Wednesday in Cape Town.
Chief Investment Officer at Benguela Fund Managers, Zwelakhe Mnguni warns that concerns remain about weak growth, and the state’s ability to deliver on reforms.
“The situation around GDP growth that can reduce unemployment. I don’t think it’s even at a point where it feels urgent to the politicians. While the minister has done very well in a number of areas, I mean, including the SARS collections ahead of expectations, the getting us out of the FATF situation, the grey listing. I think there is still a need for us to think on the big picture.”
Video: MTBPS | Structural economic reforms to aid growth
