JONES GONDO: Sona shows SA inching towards action on past promises

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JONES GONDO: Sona shows SA inching towards action on past promises
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Address was promising, but not market-moving as the international macroeconomic backdrop overshadows local news

President Cyril Ramaphosa is shown delivering the state of the nation address in Parliament. File photo: SUNDAY TIMES/ESA ALEXANDER

The extension of the R350 social relief of distress grant to the end of March 2023 will not come as a surprise to the market. The R42bn cost had already been priced into the fiscal baseline forecasts. What would have been a fiscal surprise would have been the introduction of a much larger basic income grant , which had received mixed support in the public space in the lead-up to the Sona.

Implementation has been slow, but it seems we are now much closer to action on past promises; especially the main action points laid out in the 2021 medium-term budget around energy, port and rail infrastructure reforms, as well as legislative reforms to enable skilled migration into SA and facilitate tourism via e-visas.Diversify energy generation to introduce competitive energy markets and ease the supply constraints from Eskom.

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