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Zuma fails to appease investors, rating agencies - economist

By Faeza
12 February 2016

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President Jacob Zuma’s State of the Nation speech was filled with old ideas, according to Nomura emerging markets economist Peter Attard Montalto on Thursday.

The removal of two centres of government has been considered since 1994, but never happened, said Montalto.

“It would save around R500m to 750m per year, but that would be offset by the likely massive cost of building a new parliament in Pretoria,” he said. “It would also take five to 10 years likely for net savings to be achieved.”

There was no mention of wealth tax, confirming to it won’t appear in the budget, he said.

The ban on foreign land ownership and a bill to this effect were mentioned, which will come forward in the second quarter of 2016 and will be “deeply non-investor-friendly”, said Montalto.

Fin24 has more details.