Absa’s interim CEO, Charles Russon, advocated for macroeconomic consistency in South Africa’s upcoming budget to stimulate growth, emphasizing the necessity for policy certainty and fiscal stability. The finance minister’s budget proposal is critical for investment prospects amid a decade of minimal economic growth. Additionally, Absa aims to open an office in Dubai to enhance trade links with the Middle East as part of its growth strategy.
Charles Russon, the interim CEO of Absa Group Ltd., emphasized the necessity for South Africa’s policymakers to ensure macroeconomic consistency in the upcoming budget to stimulate economic growth. In a Bloomberg TV interview, he pointed out that investors are seeking policy certainty, fiscal stability, and a conducive growth environment in the country.
South African Finance Minister Enoch Godongwana is set to present a revised budget to a divided coalition government, following a previous unsuccessful attempt. The effectiveness of this budget is critical in determining future investments, especially as South Africa’s economy has seen minimal growth over the last decade due to government inefficiencies and fiscal challenges.
Russon highlighted the importance of the budget in addressing national debt and wasteful expenditures while showcasing sound fiscal management. He indicated that South Africa’s economy could achieve a growth rate of 2% this year and the next, contingent on the policies introduced in the forthcoming budget.
Additionally, Russon discussed Absa’s potential plans to open an office in Dubai aimed at capitalizing on the increasing trade and investment opportunities between Africa and the Middle East. He remarked that Gulf Cooperation Council nations have intensified investments in Africa recently, particularly in food security and renewable energy.
By establishing a presence in Dubai, Absa aims to compete with other financial entities, including Investec Ltd., which recently opened an office in the emirate, and Standard Bank Group Ltd., already operating there with plans for expansion into Egypt.
The statements made by Charles Russon underscore the urgent need for South Africa to enhance policy certainty to foster economic growth. The forthcoming budget serves as a crucial instrument in addressing fiscal management and national investment potential. Furthermore, Absa’s strategic move to explore opportunities in Dubai reflects a broader trend of increasing financial connectivity between Africa and the Middle East, promising growth prospects for the African economy.
Original Source: financialpost.com
