Absa CEO Advocates for Policy Certainty to Stimulate South African Growth
Absa CEO Charles Russon calls for policy certainty in South Africa to stimulate economic growth, urging the government to focus on fiscal management in the upcoming budget. He also announced plans for an office in Dubai to enhance Africa-Middle East trade relations.
Charles Russon, the interim Chief Executive Officer of Absa Group Ltd., underscored the need for policymakers in South Africa to prioritize macroeconomic consistency in the upcoming budget to stimulate economic growth. He emphasized that investors are seeking policy certainty and an environment conducive to growth in his recent interview on Bloomberg TV.
Finance Minister Enoch Godongwana faces the challenge of presenting an acceptable budget amid a divided coalition government after a previous attempt faltered. This uncertainty raises concerns regarding future investment in South Africa’s economy, which has seen minimal expansion over the last decade, largely due to government mismanagement and fiscal issues.
Russon articulated the necessity of the budget to focus on reducing public debt and eliminating wasteful expenditures to demonstrate responsible fiscal management. He forecasted that South Africa’s economy could achieve a growth rate of approximately 2% in both the current year and the next, provided there is reassurance in the budgetary measures.
In addition to discussing domestic fiscal policies, Russon mentioned Absa’s consideration of opening an office in Dubai to enhance connectivity between Africa and the Middle East. This move aims to leverage the increasing trade and investment flows between these regions, especially as Gulf Cooperation Council nations seek to diversify their investments in Africa.
Absa’s potential establishment in Dubai may position it in direct competition with other financial institutions, such as Investec and Standard Bank, both of which have established a presence in the region. Russon expressed that the bank aims to connect global investors with opportunities in Africa, thus enhancing trade relations.
In summary, Absa’s CEO, Charles Russon, advocates for policy certainty in South Africa to enable economic growth. The impending budget must address critical issues of fiscal responsibility to regain investor confidence. Furthermore, Absa’s strategic expansion into Dubai reflects a commitment to facilitate stronger economic ties between Africa and the Middle East, indicating a progressive vision for future growth.
Original Source: financialpost.com
