The budget that was placed in parliament yesterday sets a very ambitious budget for this upcoming election year. The question is will the government be able to provide the kind of investment climate that will allow us to reach the proposed target.
This is an election year budget proposal, where ADP allocation is high, there is a provision to "whiten" money, and the GDP target is ambitious.
The target set is indeed ambitious, but the nation should take all the steps it can to ensure a high rate of growth for this upcoming year.
One of the major impediments to this kind of growth has been the political parties in the country, both ruling and opposition. The political instability in the country has made for a very poor investment climate, leading to lower growth.
Some experts have pointed to huge borrowing that is planned by the government that could "crowd out" the private sector, but we don’t feel this will be too much of a problem given the liquidity that currently exists in our economy.
What the government does need to concentrate on more is ensuring they can improve the political situation in the nation so potential investors are not scared off.
This will mean bringing an end to the kind of disruptive, anarchic politics that we have been subjected to for the last couple of years. The only way to do that is through proper governance and political dialogue.
Hopefully both the government and opposition will realise this.
