South Africa Court Rulings May Lift Confidence, PSG Chief Says Adelaide Changole Court rulings on some of South Africa’s most contested laws could improve business sentiment after years of policy uncertainty, according to the head of one of the nation’s biggest wealth and money-management firms.
“There are over 50 challenges to various bits of legislation,” PSG Financial Services Ltd. Chief Executive Officer Francois Gouws said in an interview Thursday. “It’s good that we’re getting clarity,” he said, adding that “the more these decisions are communicated, then the more people can understand what the landscape looks like. That helps people to gain confidence.”
Last month, the Constitutional Court struck down a law that would have expanded mandatory preferential-procurement rules including reserving some state contracts for Black-owned businesses. The court found lawmakers had failed to adequately consult the public before passing the legislation. The National Health Insurance Act — which critics say is unaffordable — also faces multiple constitutional challenges, with President Cyril Ramaphosa delaying its introduction in February because of litigation. A legacy of corruption and mismanagement under Ramaphosa’s predecessor, Jacob Zuma, still dogs an economy that’s expanded less than 1% annually for more than a decade. Companies have consequently been reluctant to invest, with gross fixed capital formation at about 14% of gross domestic product in 2025, less than half the 30% target set out in a policy plan with a deadline of 2030, the president said in August.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing