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In a poll published by Ipsos recently, four out of 10 people surveyed believe that the country is on the right track, compared with 20% in April.
The number of South Africans who are optimistic about the country’s future has doubled. This is mainly due to the formation of a business-friendly coalition government. Coupled with this, for more than six months of no power cuts, a survey shows.
In a poll published by Ipsos recently, four out of 10 people surveyed believe that the country is on the right track, compared with 20% in April. They relate this to the formation of the so-called government of National Unity (GNU), which was formed after the African National Congress lost its parliamentary majority in the May elections for the first time since taking power in 1994. Ahead of its formation, many were concerned that the ANC might align with the left-leaning Economic Freedom Fighters and former president Jacob Zuma’s uMkhonto weSizwe Party. While foreign investors might still be wary of investing in South Africa, local sentiment is more positive, Ipsos said in a statement.
Since the formation of the GNU, the rand has gained almost 5% to the dollar, local-currency bonds have outpaced all peers in an emerging-market index, and the Johannesburg Stock Exchange has hit successive record highs. Other factors that contributed to the improved sentiment include South Africa surpassing 150 days without power cuts and signs of easing inflation pressure “suggesting that the country may be on the cusp of a long-awaited period of economic growth,” Ipsos said.
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Inflation is forecast to be reined in and is expected to fall below 4% in the coming months. However, other indicators like unemployment, violent crime, inflation, and social inequality, remain to be concerns.
