Oceans of change – you can feel it in the air
The first quarter of 2018 is coming to a close, and things haven’t looked so positive for South Africa in almost a decade. As political events feed into the economy, the commercial property sector in Cape Town is set to benefit. You can almost feel the change in the air. Here are some reasons to feel confident about the way forward.
Ramaphosa wastes no time in steering SA straight
Less than 100 days into Cyril Ramaphosa’s interim presidency, investor confidence is rising in the wake of the new president’s reforms. Our previous blog post on the commercial property sector outlook for 2018 was upbeat about the prospect of a Ramaphosa presidency, and recent events have only added to our optimism.
The new president began his time in office by inviting citizens to join him on his morning runs in various parts of Cape Town. All were welcomed with his signature smile – a far cry from his predecessor.
Ramaphosa has continued this morning ritual in various parts of SA over the past few months. During office hours he has been hard at work rebuilding the country’s international standing, while investigations have stepped up a notch into the corruption-riddled Gupta family.
He has implemented a turnaround strategy for troubled parastatals SAA and Eskom. He is encouraging a sensible approach to land reform. Expert panels on economic recovery and entrepreneurial development have been initiated. And these are just some of the initiatives that the new president has announced since taking office. He is just getting started.
Though challenges remain, investor confidence is improving
South Africa has weathered a difficult decade, and the problems that Cyril Ramaphosa has inherited from the Zuma presidency won’t disappear overnight, but investors have shown renewed confidence in the country’s future.
- The Rand, which is one of the best indicators of SA’s standing with foreign investors, has strengthened substantially and maintained its value exceptionally well since the beginning of March.
- A stable currency should provide investors with an extra incentive to invest in the Cape Town commercial property sector, while local businesses will be looking to expand once again.
- Developments that were on hold are being seen to commence construction as the economy starts to improve.
If you’d like to seize the opportunity and invest in premium office space in the greater Cape Town area, contact us today.