By Lehlohonolo Lehana.
Photo Credit: GCIS.
President Cyril Ramaphosa delivered his fourth state of the nation address (SONA) on Thursday evening, looking to inspire the country with words of hope and deliver promises of progress after a year in which it was ravaged by the Covid-19 pandemic and nationwide lockdown.
While the president hit some of the right notes – like extending support to businesses and employees who continue to suffer the effects of lockdown – some of his message fell flat when projected onto the economic reality of the country.
Talk of ‘post-apartheid’ cities seems a fantasy when existing cities are falling to mismanagement and disrepair; and hopeful words on growing the economy and resolving a decades-long power crisis ring empty as rolling blackouts continue, and debt levels shoot up as the government dithers over reforms.
General response to the SONA, as was the case in 2020, was thus a mixed bag, with political parties, civil and business groups, analysts and economists weighing in.
The running theme, though, is that it was very much “more of the same” from last year.
Businesses, which were a big focus of the speech, felt encouraged by the president’s commitment to helping dig them out of the Covid-19 hole, but most commentary would only swing into optimism with great caution, knowing that it hinges on successful implementation.
Civil groups and analysts that have been tracking government’s moves for years are acutely aware of how words do not necessarily lead to action, and had a more muted response to the speech.
On the opposite side of the spectrum, Ramaphosa’s political opponents derided the president’s words as just more of the same rhetoric that has been delivered from the ANC-led government for well over a decade.
Markets – SONA 2021 was a non-event
The SONA was a non-event in terms of currency movement, said Bianca Botes, executive director at Peregrine Treasury Solutions.
The rand held steady as the president delivered his speech, and showed no significant swings in the hours after.
Focus will now shift to the Budget Speech planned for later in the month, she said.
Quiet markets reflect the trend that has been seen over the past few months, where the rand has been affected more by global factors such as US stimulus plans, liquidity, risk-on sentiment and the hunt for yield.
Markets were on the lookout for any indicators of economic policy shifts or changes around SOEs and government spending, but these were largely absent from the president’s speech.
OUTA – Uninspiring and recycled
Civil group Outa said that the president’s speech failed to inspire hope and restore public trust in the government – instead opting for recycled rhetoric and meaningless highlights.
“This year’s SONA listed a few achievements that were far short of spectacular and what the public expected of their government,” said Outa head Wayne Duvenage.
“The president’s address was by and large very disappointing and there appears to be a general view that little was mentioned regarding new solutions designed for substantive positive outcomes.”
Duvenage said the speech missed the mark on many questions that need decisive answers, and lacked hard deadlines for plans and programmes that the country needs right now.
Some of these include: renewable energy programmes; the Covid-19 vaccine rollout; financial situations at SOEs; procurement process transparency; the public sector wage bill; and anti-corruption measures.
“We needed inspiration and leadership that can build public trust in our State’s ability to take meaningful and decisive action to turn our economy around. SONA 2021 did not provide this,” Duvenage said.
Political parties – Same old talk on failed policies
South Africa’s two biggest opposition parties, the Democratic Alliance and the Economic Freedom Fighters, both had takes on the speech – neither of which were positive.
The DA called the speech “unworkable” and rooted in failed ideology. The party’s gripe was that Ramaphosa focused on plans and promises that are rooted on the ANC being in power and managing them, while failing to account for that party’s numerous failures and broken promises.
“South Africa is in deep, deep trouble,” said DA leader John Steenhuisen. “We needed to hear about real progress on real solutions to our real challenges. (Instead, Ramaphosa) used beautiful words and soothing tones to offer empty promises and impractical plans.”
Steenhuisen said the president should have delivered a detailed Covid-19 vaccine rollout plan, an actionable strategy to grow the economy, and commitments to holding the government accountable.
The EFF meanwhile, described the speech as “nothing new”, with party secretary general Floyd Shivambu saying the president’s address matched the definition of insanity. “Insanity is doing the same thing over and over again, expecting a different result,” he said.
Shivambu said Ramaphosa was trying to “hide the dead horse”, giving no direction for the battered economy or millions of South Africans who lost their jobs in the past year.
He said the president’s quoted figures of hundreds of thousands of job “opportunities” were questionable, and a drop in the ocean compared to the two million people who “went back to poverty because of joblessness”.