Dear Readers,

The President’s delivery of the State of the Nation Address (SONA) always means that the country is back in full swing. We can all take stock of our national achievements and how we are going to tackle the challenges faced by our country. From the perspective of Warwick Wealth, our main concern is what the SONA means for the economy, markets and most importantly, our clients.

On balance, I thought this year’s SONA was positive, focused and workman-like. We have made progress in dealing with some of the challenges we should never have got into in the first place, such as the electricity crisis, Financial Action Task Force (FATF) grey listing and investment downgrades. Operation Vulindlela (why is it not simply called fixing broken infrastructure?), has achieved some successes, inflation is largely under control and the rand has strengthened.

Now for the flip side, the “to do list” for the President is getting longer. Nonetheless, the President identified tackling organised crime as a key priority as well as improving service delivery at the local level. I think we can all agree that these are justifiable priorities, particularly for those suffering from crime and chronic water shortages.

Of course, to a significant degree the global and macroeconomic environment is beyond the control of government, but at least government acknowledges that for investors to regain confidence in our economy, structural factors must be addressed urgently.

So, while it is justified for business to support the government of national unity in its endeavors, I am reminded of the Russian phrase used by President Ronald Reagan when negotiating with Soviet President Mikhail Gorbachev, “Doveryai, no proveryai”, Trust but verify!

Until next month, take good care and let’s hold thumbs for a good national budget.

Sincerely,