President Cyril Ramaphosa said on Monday that widespread support for the seventh administration, made up of 11 political parties, and the continued reform agenda, has contributed to the improvement in sentiment of South Africa’s trajectory.

In his weekly letter to the nation, he reflected on the Government of National Unity’s (GNU’s) first 100 days in office and said that the positive sentiment was supported by actual progress in addressing some of the country’s most pressing economic and social challenges.

“Nowhere has this been more evident than in the work done to resolve the energy crisis. The country has had more than 200 days without loadshedding. This has made a considerable difference to the lives of citizens and the operations of businesses. This work has also unlocked unprecedented levels of investment in the energy sector,” he pointed out.

Ongoing reforms in the logistics sector are also improving the operational performance of port and rail networks, he added, which he said would positively impact export industries and broader economic activity.

He pointed to South Africans across society increasingly rallying around the programme and work of the GNU, saying this was reflected in recent opinion polls, and rising confidence in the country’s economic growth prospects by business and local and international investors.

Ramaphosa said improved sentiment had boosted the value of the rand, which reduced the cost of oil and cost of fuel, in turn reducing the cost of living for all South Africans.

The positive sentiment, he said, would benefit the country’s fiscus, addeding that the stronger economic outlook would improve South Africa’s credit rating, which would, in turn, “facilitate greater access to global capital markets and lower our borrowing costs.”

“When we spend less money on debt servicing costs, government has more space to increase its expenditure on building public infrastructure and providing education, healthcare, basic services and social support,” Ramaphosa explained.

Increased business confidence would also attract higher levels of private investment in the economy, he noted,

“When investors are more optimistic about their business prospects, they are more likely to invest more capital and expand their existing operations. Improved confidence also encourages the start-up of new businesses,” he added. 

Ramaphosa said while it was still early days for the GNU, and that the growth of the country’s economy was still to pick up pace, “a firm foundation is being laid, our growth prospects are being revised upwards and we are heading in the right direction”.

“Our task now is to work together to further encourage hope and optimism by making a real and substantial difference in the lives of all South Africans,” he said.