Chief Executive Officer at Betterbond, Rudi Botha, said the budget delivered by Minister of Finance Malusi Gigaba on Wednesday proved that South Africa had financial discipline and stability.
Botha said the budget was designed to prove this to investors, adding that the objective had probably been realised. Much has been reported about the heavy taxation, which featured prominently in that budget.
While there are fears that this might erode some of the gains made in the real estate sector, it is a blow that the industry is prepared to take, when one examines the bigger picture.
“This is the only way we are going to attract the funds we need from both foreign private investors and local investors who have been sitting on cash to re-fire SA’s economy, boost the growth rate and start creating new jobs,” admitted Botha.
He explained that the long term goal was more important, adding that Gigaba had showed some intestinal fortitude, by taking some tough decisions in order to secure a better future.
“And in the longer-term, increased employment is the real key to sustained growth and development in the real estate sector, so BetterBond also strongly supports the forthcoming Job Summit and Youth Working Group announced by President Ramaphosa during his recent State of the Nation address, as well as the Budget allocations for internship incentives and the establishment of a Youth Employment Service,” added Botha.
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“We also applaud the vision behind the new focus on educating our youth to be full players in the Fourth Industrial Revolution, while also seeking to re-vitalise SA’s manufacturing sector and so immediately start to create opportunities for entrepreneurs and lower-skilled workers who have been let down over the past decade by our mismanaged State education system.”
The big word that has South Africans terrified is downgrade. The vultures have been circling for the past year – in the build-up to and after the 54th National Conference of the governing African National Congress.
Botha said it was clear Gigaba’s delivery of the budget was an attempt to avoid this pitfall.