{"id":89348,"date":"2024-06-03T19:13:06","date_gmt":"2024-06-03T17:13:06","guid":{"rendered":"https:\/\/radioislam.org.za\/a\/?p=89348"},"modified":"2024-06-03T19:13:06","modified_gmt":"2024-06-03T17:13:06","slug":"post-election-analysis-economist-dawie-roodt-on-market-stability-and-economic-outlook","status":"publish","type":"post","link":"https:\/\/radioislam.org.za\/a\/post-election-analysis-economist-dawie-roodt-on-market-stability-and-economic-outlook\/","title":{"rendered":"Post-Election analysis: Economist Dawie Roodt on Market stability and economic outlook"},"content":{"rendered":"

\"\"<\/p>\n

Azra Hoosen |\u00a0ah@radioislam.co.za<\/a>
\n3 June 2024 | 18:00 CAT
\n2 min read<\/p>\n

As South Africa navigates the aftermath of the recent elections, the potential emergence of coalition governments becomes a critical issue. This raises concerns about market stability, investor confidence, and the direction of economic policy.<\/p>\n

According to Award-winning economist, Dawie Roodt, initially, the rand strengthened just before the elections as many analysts expected the ANC to secure between 45% and 50% of the vote, making a coalition with smaller political parties a possibility. However, the rand came under significant pressure when it became clear that the ANC would get less than 45%, raising the possibility of a coalition with far-left parties such as the MK Party and the EFF. More importantly, there was a notable weakness in the capital markets. Currently, the rand remains weak.<\/p>\n

\u201cThe financial markets want a coalition more to the right, the DA is the obvious candidate for that. If the ANC goes into a coalition with the left, the EFF or the MK party – The rand will immediately take a further knock and the capital markets will see foreigners fleeing, the equity market, already under pressure will fall even further, and we could easily lose another 10%. Keep in mind all these markets are already undervalued. In the real economy, investors will pull away. Investment and the economy will not see growth for a long time,\u201d says Roodt.<\/p>\n

Roodt pointed out that even the potential involvement of the EFF has caused a very negative market reaction. If they genuinely intend to implement the policies they\u2019ve been advocating, it will have a significant negative impact on the economy. \u201cHowever, I’m not certain that even the far-left will actually implement the policies they stand for,\u201d he added.<\/p>\n

\u201cWe should be proud of the institutions of the Free Press, the Reserve Bank, civil society, and the churches, which are all keeping South Africa\u2019s democracy alive,\u201d he said.<\/p>\n

Roodt believes we should not be proud of the current political parties, describing them as a mess. He is particularly concerned about the parties surrounding the ANC, such as the MK and EFF. These offshoot and far-left parties, including the ANC itself, are interventionists who believe in policies that do not align with South Africa\u2019s economic reality.<\/p>\n

\u201cPolitics and economics are not in sync, we need a more efficient state, a move slightly to the right and that is not what the political environment is telling me and that is concerning,\u201d he said.<\/p>\n

LISTEN<\/strong> to the full interview with Ml Sulaimaan Ravat and Dawie Roodt here.\u00a0<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Azra Hoosen |\u00a0ah@radioislam.co.za 3 June 2024 | 18:00 CAT 2 min read As South Africa navigates the aftermath of the recent elections, the potential emergence of coalition governments becomes a critical issue. This raises concerns about market stability, investor confidence, and the direction of economic policy. According to Award-winning economist, Dawie Roodt, initially, the rand […]<\/p>\n","protected":false},"author":28,"featured_media":89349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[8490],"tags":[],"class_list":["post-89348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-elections-2024"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/radioislam.org.za\/a\/wp-content\/uploads\/2024\/06\/South-Africa-Economy.png?fit=1200%2C675&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/pc0QIf-nf6","jetpack_likes_enabled":true,"publishpress_future_action":{"enabled":false,"date":"2026-04-13 01:16:59","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts\/89348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/comments?post=89348"}],"version-history":[{"count":0,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/posts\/89348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/media\/89349"}],"wp:attachment":[{"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/media?parent=89348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/categories?post=89348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radioislam.org.za\/a\/wp-json\/wp\/v2\/tags?post=89348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}