The South African State of the Nation Address kicks off tomorrow, Thursday the 7th of February 2019 at 17:00pm.
This marks the official opening of Parliament for the new year and it will give President Cyril Ramaphosa an opportunity to address political policies and key challenges which lie ahead. This address will have a direct impact on various business segments and investor confidence.
CEO of Galetti Corporate Real Estate, John Jack, shares his thoughts on why anyone in the property game should be watching the State of the Nation Address very closely:
A successful property market relies heavily on a strengthened economy for investment. Investors need to believe that their money will be secure and protected, and this security is encouraged by positive policies and sustainable taxes. President Ramaphosa’s address will give an indication of the direction that the economy will progress and investors will be watching it closely.
Everyone will be watching the address tomorrow hoping that the message gives clarity to the business sector as a whole. Clear policy allows occupiers and investors to take decisions related to their real estate portfolios. From an occupier perspective, whether to expand to new premises or consolidate their footprint into a smaller building will be front of mind. This is driven by changes in their employee count and/or inventories held. For investors, the decisions would be whether to sell or hold on to their portfolios in anticipation of reduced vacancies and capital growth. International investors will be watching it closely and so should anyone in the property game. South Africa needs foreign investment, but international investors need security and we need to give them confidence. There is a lot resting on tomorrow’s SONA address.
A key topic of interest will be the matter of land expropriation without compensation, which hopefully will be addressed in such a way so as to reassure foreign investors.
Another main focal point will be corruption. President Ramaphosa has already been under fire from the governments of Germany, the United Kingdom, the USA, the Netherlands and Switzerland. The memorandum written to the presidency – signed by all five countries – spoke of a concern about the challenges of foreign investment and so this part of the State of the Nation Address is an important one.
The State of the Nation Address will be televised on various broadcast networks such as eNCA and SABC from around 17h00 tomorrow. Parliament’s Youtube Channel will also be airing the address and various media outlets will be sharing highlights of the events as they unfold.