Sona: Constructing a Robust Economy with Solid Foundations, Not Fragile Materials
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JIMMY MOYAHA: On Thursday, President Cyril Ramaphosa will present the State of the Nation Address [Sona]. In preparation for this, we will discuss what we might expect leading up to the address.
As I mentioned earlier, our usual program will not air that day; instead, we’ll have a special broadcast to build up to the Sona. We will have to wait until Monday for our reactions, so today we’re engaging in this discussion to prepare and share our expectations.
I’m delighted to be joined by Dr. Raymond Parsons from the North West University School of Business and Governance to explore this topic.
RAYMOND PARSONS: Good evening! It’s always a pleasure to connect with you. What are your thoughts on the upcoming State of the Nation Address? I’m eager to hear your realistic expectations as well as what you hope to hear. Let’s begin with your expectations for this year’s Sona.
RAYMOND PARSONS: Good evening. It’s essential that business and market participants pay attention to the Sona, given its significant implications.
The current global and domestic economic landscape has taken on heightened importance. This will be President Ramaphosa’s first Sona to the Seventh Democratic Parliament, marking a critical occasion.
From a business perspective, it’s vital that the Sona articulates how the government of national unity (GNU) plans to expedite urgent economic reforms aimed at promoting job-rich growth, building on the recent progress.
The Sona must unveil new elements to bolster the efforts required for a larger, more resilient economy.
Nonetheless, we’ve also seen South Africa grappling with emerging global risks and opportunities in recent months.
The Sona must address necessary adjustments and strategies to navigate the shifting global landscape.
We have numerous strategies at our disposal; initiating dialogue and fostering constructive engagement with our trading partners will be crucial in overcoming potential challenges and transforming them into opportunities.
A significant area we want to see tackled in the Sona is how to strengthen the South African economy against external pressures.
This is crucial, as the Sona must exhibit insights and leadership concerning the internal and external challenges we currently face.
JIMMY MOYAHA: You mentioned the GNU earlier, and I’d like to explore that further. As you pointed out, this is the first Sona delivered under the coalition government—a government formed by several parties.
Is there a sense of concern or anxiety regarding the need to balance the diverse views of multiple parties from the president’s viewpoint? Or will this be an opportunity for these parties to demonstrate their unity?
RAYMOND PARSONS: It’s important to recognize that since the establishment of the GNU following last year’s election, market and business reactions have generally been positive. There have been challenges, sure, but the GNU has had to navigate various difficulties and will continue to face tests.
However, it is essential to communicate to the markets and businesses that we, as a GNU, are beginning to address these issues.
It’s noteworthy that the previous medium-term development plan was solely under the ANC government.
Recently, the GNU has begun formulating its medium-term strategy, and it will be vital to see how this aligns with the expectations set out in the Sona regarding growth, unemployment, and inequality.
Hence, the Sona must effectively outline the next steps and improvements required under the GNU, in keeping with its commitment to fostering job-rich and inclusive growth—something that the markets and businesses are eager to observe.
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JIMMY MOYAHA: Dr. Parsons, I want to revisit something you mentioned earlier—specifically, Trump-proofing the economy. We have seen clear statements from Washington, along with responses from the Union Buildings and here in South Africa.
Will the State of the Nation Address present yet another opportunity to assert South Africa’s position and clarify our values? Is this a chance for the president to firmly declare that external influences won’t dictate our direction?
RAYMOND PARSONS: In light of the evolving global situation, particularly regarding the United States, I hope the president will address these concerns.
So far, I commend the president for his balanced strategy; he has highlighted the importance of engagement and pursued more nuanced diplomatic approaches.
After all, we will be hosting the G20 summit, which includes President Trump’s visit to South Africa.
The US Secretary of State will also be making a visit in two weeks.
Moreover, next year, the US will take on the G20 presidency.
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We must navigate these matters with caution, clearly defining how the GNU will address these challenges ahead. It’s critical to diversify our economy.
We should capitalize on our opportunities presented by the African Free Trade Agreement and BRICS as well.
To use a metaphor from the traditional tale of the three little pigs: the first pig built a straw house, easily destroyed by the wolf. The second pig constructed a wooden house, which also fell. However, the third little pig built with bricks, and the wolf could not topple it.
We need to build our economy with resilience—’bricks’ that symbolize our engagements and commitments within BRICS and beyond.
The reality is we must bolster our economy to support the growth-friendly policies we’re dedicated to, as a strong economy with robust growth is our best defense against external uncertainties.
Consequently, both the Sona and the forthcoming budget must convey a clear message to our citizens and the global community: we are committed to prioritizing South Africa’s economic interests and instilling confidence to meet the challenges of the upcoming year in 2025, which is certain to be turbulent.
JIMMY MOYAHA: We must put South Africa first. It’s time for decisive measures, and the imminent State of the Nation Address presents the ideal opportunity to do this.
Thank you, Dr. Parsons, for your invaluable insights. Dr. Raymond Parsons from the North West University School of Business and Governance has shared his thoughts and expectations ahead of the State of the Nation Address set for Thursday.
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