South Africa’s business-friendly coalition government has triggered a wave of investment announcements and positive sentiment not seen in years, spurring hope that the economy may finally be finding its footing after a lost decade and a half.
Since the 2008 financial crisis, rampant corruption, erratic lawmaking and hostile relations between business and the state deterred investors — and in the May election helped cost the ANC its majority for the first time since the end of whites-only rule in 1994. Economic expansion averaged less than 1% over the past decade, outpaced by population growth.
Business leaders expect the coalition government — stocked with opposition members in the cabinet — to perform better because of increased competition and as a chastened ANC will need successes to bolster waning support. Everybody acknowledges the challenges. What I do like is that all parties understand that we need to do this together