Charles Russon, Absa CEO, emphasizes the need for policy certainty in South Africa to stimulate economic growth. He calls for responsible fiscal management in the upcoming budget presentation, which is crucial for attracting investors. In addition, Absa plans to expand into Dubai to leverage growing trade and investment opportunities between Africa and the Middle East.
Charles Russon, the interim Chief Executive Officer of Absa Group Ltd., emphasized the necessity for policy certainty in South Africa to stimulate economic growth. In a recent interview, he stressed that the upcoming budget presentation must ensure macroeconomic consistency, which is crucial for attracting investors seeking a conducive environment for fiscal stability and expansion.
Russon pointed out the critical condition of South Africa’s economy, which has seen annual growth of less than 1% over the past decade due to corruption, mismanagement, and inadequate fiscal strategies. He underscored the urgent need for the government’s budget to address issues like reducing debt and curtailing wasteful expenditures.
Envisioning a potential growth rate of 2% for the current and following year, Russon highlighted that this prospect hinges on the effective outcomes of the budget. The need for fiscal responsibility is paramount as the Finance Minister, Enoch Godongwana, prepares to deliver an acceptable budget amidst a challenging coalition government landscape.
In addition to advocating for fiscal reforms, Russon mentioned Absa’s plans to open an office in Dubai. This strategic move aims to capitalize on increasing trade and investment opportunities between Africa and the Middle East, as Gulf countries intensify their investment activities in African markets, focusing on sectors like food security and renewable energy.
Absa’s Dubai branch will position the bank against existing competitors, including Investec, which established its office recently, and Standard Bank, the largest lender in Africa, which has already initiated similar expansions. Russon’s vision includes facilitating global connections with Africa while enhancing business opportunities for both regions.
In conclusion, Charles Russon, CEO of Absa, advocates for policy certainty as a crucial element for economic growth in South Africa. With an essential budget presentation on the horizon, it is vital for the government to implement effective fiscal strategies that support sustainable expansion. Concurrently, Absa’s planned expansion into Dubai reflects the bank’s commitment to fostering business links between Africa and the Middle East, thereby contributing to the continent’s broader economic development.
Original Source: financialpost.com
