Charles Russon, CEO of Absa, stresses the importance of macroeconomic consistency and policy certainty for South Africa’s growth, especially with the upcoming budget. The country has seen slow economic growth, and the context of an unstable government raises investment concerns. Absa also plans to open an office in Dubai to facilitate trade with the Middle East.
Charles Russon, the interim CEO of Absa Group Ltd., emphasizes the necessity for macroeconomic consistency in South Africa, as highlighted on Bloomberg TV. He states that policy certainty is crucial for investors to foster an environment favorable for growth. Ahead of the budget announcement, there are pressing needs to reduce debt and ensure responsible fiscal management amid South Africa’s sluggish economic expansion of less than 1% annually for the past decade.
Finance Minister Enoch Godongwana’s upcoming budget aims to address these issues but comes after a previous budget attempt failed, raising concerns about investment stability in the country. Russon notes that achieving 2% growth this year and next is possible, contingent upon the certainty that emerges from the budget.
In a move to tap into trade and investment flows between Africa and the Middle East, Russon indicates that Absa is exploring the opening of an office in Dubai. This step is strategic, given the increased investments from Gulf Cooperation Council countries focusing on sectors like food security and renewable energy. With this expansion, Absa competes with other financial institutions that are already establishing a presence in the Middle Eastern market, such as Investec Ltd. and Standard Bank Group Ltd.
The article outlines the urgent need for policy certainty in South Africa to drive economic growth, as underscored by Absa’s interim CEO Charles Russon. With the economy struggling to expand, the upcoming budget is critical in establishing fiscal responsibility and investment confidence. Additionally, Absa’s potential expansion into Dubai represents a strategic move to enhance trade relations between Africa and the Middle East. This highlights the necessity of international connections to foster economic development for the continent.
Original Source: financialpost.com
