For those of us invested in South Africa, we have faced an ongoing onslaught of challenges that I have discussed throughout my blogs. With the recent reelection of President Ramaphosa, it feels to me like the country is now "on the road again."
As reported in the excellent publication, fin24.com, "President Cyril Ramaphosa took a step toward putting SA on a growth path and fighting corruption by naming a slimmed-down Cabinet that retained Finance Minister Tito Mboweni and Public Enterprises Minister Pravin Gordhan in their posts."
This reelection will prove key. I am expecting that South Africa has turned the corner. Creating certainty throughout the society, from steady jobs, continuous water and electricity, a support of initiatives to grow the economy, and a commitment to rooting out corruption, will go a long way to reducing and even perhaps ultimately eliminating the "South African discount" that most often gets applied to SA equities.
An economy with a steady hand on the helm, along with renewed confidence in the enlightened direction of the country coupled with pragmatic and improved expectations around the most basic infrastructure needs like electricity, will facilitate investment, growth and wellbeing.
Its a further reason to have more confidence in the SA miners who have such remarkable portfolios of assets, like the one I know best, Sibanye-Stillwater.