GNU hailed as a victory for SA and the property industry
Category From Our CEO
Millions of South Africans are celebrating right now as the country embarks on a new political journey that is being hailed as the best possible outcome of the recent elections and has the potential to deliver enormous economic and social benefits.
"This follows the conclusion on 14 June of a landmark agreement between SA's main political parties to work together in a Government of National Unity (GNU) - a courageous move that is in fact already being rewarded by the financial markets and saw the value of the Rand jump 0,5% in one day and gain 3% in a week, compared to an average 0,4% decline among other emerging currencies," says Berry Everitt, CEO of the Chas Everitt International property group.
"And we foresee that the property market overall, and the residential sector in particular, will experience similar benefits in a very short space of time. For a start, many people who have been sitting on the fence waiting to see what would happen during and after the recent General Election will be encouraged to buy now that the GNU agreement is in place.
"In addition, we expect that there will be a large inflow of capital into SA in response to the announcement of the GNU, the resulting re-election of President Cyril Ramaphosa for a second term and the political and social stability that this spells for investors. This inflow will further strengthen the Rand, lower inflation and make it possible for the Reserve Bank to start cutting interest rates - maybe even sooner than expected. And that will of course give the real estate market a huge boost by immediately making home ownership more accessible to prospective buyers."
In other words, he says, the GNU agreement will provide both renewed consumer confidence and increased affordability, both of which are key to the full recovery and growth of SA's property market.
"Consequently, we are extremely grateful to the leadership of those parties who have committed to the GNU for putting aside their individual agendas at this time and finding the common ground where they can work together according to fundamental principles emerging from our Constitution and the Bill of Rights, and a joint commitment to the Rule of Law, integrity, good governance and accountable leadership.
"This agreement is, we believe, a really important milestone in the development of SA's democracy, as it means that for the first time since 1948, the country will not be governed by just one 'ruling party' with one or more parties in opposition. Instead there will be several parties collaborating to try to achieve the outcomes that most South Africans clearly want, irrespective of their party loyalties.
"We are encouraged by the fact that the President has left the door open for other parties to join this national endeavour, and the fact that there is already a framework in place for those in the GNU to develop joint policies to achieve accelerated economic growth and job creation, poverty reduction, the eradication of crime, corruption and GBV, the provision of quality education, skills development and healthcare and the creation of a merit-based, professional and effective public service.
"And we are proud of SA for once again showing the world what we are able to achieve by following the path of conciliation and collaboration instead of opting for confrontation - and why we are so often able, as a nation, to snatch victory from the jaws of a predicted defeat."
Issued by Chas Everitt International
For more information
Call Berry Everitt on
+27 82 441 3601
Or visit www.chaseveritt.co.za
Author: Berry Everitt