Business encouraged by president’s speech

PRESIDENT Cyril Ramaphosa’s Sona 2019 (Sate of the Nation Address) was very positive and one of hope, and taking the next steps towards his “new dawn” and economic renewal.

We are encouraged that business confidence had stabilised through investment successes and the firm stance taken and action proposed to

deal with corruption and maladministration, including prosecution and the recovery of funds and assets.

The progress made through governmental cost-cutting and within state structures and administration, and management of SOEs, in particular the proposal around dealing with the Eskom crisis, should prove very positive for the economy.

The focus on economic growth sectors, including the ocean economy, tourism and so on are all positives and we note with encouragement the news of a significant gas find off the coast of Mossel Bay. On the issue of land, the proposal to use state-owned land for redistribution and other proposals, including a Human Settlements Bank, are all noted.

Our message is: Mr President, we are “watching this space” and looking forward to a renewed growth path.

For now, though, we should note that there is no “magic bullet” and economic recovery is likely to be gradual, simply because there is much to be done. On the back of this, the property market will continue to trade fairly flat with mostly sideways activity during the early part of this year.

The “must buy and must sell” market, generally below R1.5 million (up to R3m depending on the area), will remain active and well-priced properties will sell within a reasonable timeframe.

The second market, that is, those