Since taking power in February, Cyril Ramaphosa has had his hands full with several pressing issues – but which of these will he act on? With election year approaching, Ramaphosa has found himself doing double duty.
As leader of the ANC, he is being pressed to implement policies that will attract votes. As State President, he needs to address South Africa’s pressing social and economic challenges.
Unfortunately, some of the ANC’s current policies (such as land reform) have the potential to help the ruling party but damage the country.
The debate over land reform continues to rage, with AfriForum touring the world with a message of grave concern. Surprisingly, U.S. President Donald Trump briefly weighed in on the debate – a move that could only add controversy to the issue.
The stimulus package – convincing the world that Cyril still means business
In the face of negative headlines and worried investors, Cyril Ramaphosa recently announced a stimulus package to steer SA’s economy in the right direction.
Delivering his speech with the usual upbeat, inspirational tone, the President outlined several measures that he believes will jump-start the economy:
• Relaxing visa rules to attract investors and skilled professionals
• Making bandwidth cheaper and more accessible
• Lowering the cost of doing business
• Investing in township infrastructure and services
• Land reform and agricultural development
While the agricultural property sector may have reason to be cautious, commercial property sales may benefit from the stimulus package.
The relaxation of visa rules could mean a further increase in the number of foreign investors who choose to relocate to Cape Town – especially with the weak Rand offering them such great value.
With better internet infrastructure and lower costs of doing business, the Mother City’s tech sector could see an even healthier growth rate.
Higher demand for modern commercial office space would most probably follow.
Beyond 2019 – the long term effects of “Cyrilnomics”
Despite the excitement around their announcement, policy changes take time to kick in.
Time will tell whether the stimulus package will alleviate South Africa’s economic situation, but Cape Town’s resilient economy would definitely benefit from some of its proposed policies.
If you’d like to take the opportunity to invest for the future, commercial space in Cape Town may be the ideal asset.
Contact us today to learn more about the Cape Town commercial property market. Our area specialists are on hand to assist you.