Justice Malala positive on country’s economic future

Speaking at a breakfast hosted by PSG Wealth at a venue in the city on Tuesday, political analyst Justice Malala shared his views on the rapidly changing political environment in the country with clients and PSG Wealth advisers.
Malala’s presentation came at a most appropriate moment in South Africa’s history, being only hours after the National Executive Committee (NEC) of the African National Congress (ANC) announced its resolution to recall President Jacob Zuma.
Malala said that he is very optimistic about the prospect that Deputy President Cyril Ramaphosa will take over from Zuma soon and that all indications are that it will positively influence the economy of the country. “Ramaphosa has the right background and even with the small margin that he currently has, he will be able to turn things around. He is accountable and the tide will turn. A clean-up is on the cards and the integrity of public institutions will be restored,” Malala reckoned.
According to Malala, Ramaphosa will soon have to face a number of burning issues that includes the expropriation of land without compensation, the funding of free tertiary education, the use of racism as a dividing measure, corruption and the economy. He advised analysts to steer clear from extreme positions. “It is not the end of the world and there will always be ups and downs,” he said and projected that Ramaphosa will use the National Development Plan (NDP) that was introduced in 2012, as the blueprint for the delivering of 3% growth in 2018, rising to 5% by 2023.
PSG Asset Management Chief Executive Officer, Anet Ahern, took the opportunity to enlighten guests on the current reality in the global investment environment. “The outlook for global growth is good. We are witnessing a global synchronised recovery and as a result, the global appetite for risk is high and valuations are elevated,” Ahern said and advised investors to expect lower returns from global assets but to keep on investing selectively.
Chief Executive Officer of PSF Wealth Distribution, Dan Hugo, closed the session and said that investors make mistakes which include misunderstanding of appetite and tolerance of risk that they deviate from logic and reason due to past experiences, that they have an inherent attachment to money and that they finally don’t stick to the correct strategy. He advised investors to consult with a registered financial advisor who will assist to develop a strategy that is tailored for the individual’s circumstances and to take emotion out of decisions. “Diversify and stick to your chosen strategy,” Hugo advised.

Story and photos: BARRY VILJOEN
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