Business reacts: Sona commitments will not move the dial — yet

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Business reacts: Sona commitments will not move the dial — yet: Though the president’s speech hit the right notes, business will be looking out for delivery over promises.

, said “there is clearly positive reform going on on a range of fronts … [yet] the headline dial is not shifting”.

The speech, Montalto said, was broadly as expected “and we don’t think especially moves the dial for December”. “With so many commitments from the government, they now want a social compact which basically means business making commitments on the jobs they will create, but this is simply not credible in our view. If the dial continues not to move in the year ahead … then we will all think this speech looked decidedly odd. Maybe that’s how to view things here — the president had little option but to repeat large chunks of last year’s speech and delivery will either happen or not.

Montalto noted that business sentiment is unlikely to shift on the back of Thursday night’s address, considering the slow pace of delivery. “One gets the impression of a range of reform pressures mounting up on the economy to budge it forward but still not really moving the dial — yet. Herein is the problem for the markets, investors and business considering the speech. You either believe that the dial will move soon or you don’t. History suggests less rather than more dial moving.

For the most part, Ramaphosa hit the right notes. But, Montalto concluded, “that was always the case”. That’s just R42.50 a month, and you can

 

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Can't they have this SONA in the townships and rural parts of the country (Rotating) in that way maybe those areas can improve in a short space of time

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