The unprecedented decision by the Government of National Unity (GNU) Cabinet to postpone the Budget until 12 March because of disagreement over tax increases will inevitably have unintended consequences for South Africa’s political economy.

Prof Raymond Parsons, economist from the NWU Business School, says if the eventual Budget in March turns out to be truly committed to growth and job creation (as was outlined in the recent GNU Medium Term Development Plan) the delay would have been worthwhile if the GNU gets agreed trade-offs and better outcomes for the economy as a whole.

“We should not underestimate what may ultimately be at stake for the South African economy and business in the face of the current sharp breach in bilateral political and diplomatic relationships between the United States (US) and South Africa.”

“We won’t be bullied.” These words by President Cyril Ramaphosa during his State of the Nation Address (SONA) in response to US president Donald Trump’s verbal attacks on South Africa grabbed headlines, but SONA 2025 had much more to unpack than that.

On Friday, 7 February, the North-West University (NWU) Business School hosted its Pitso discussion analysing SONA 2025 under the theme of: In pursuit of “sufficient consensus”: SONA 2025.

President Cyril Ramaphosa’s wide-ranging State of the Nation Address (SONA) agenda that confirms the tangible commitment of the Government of National Unity (GNU) to faster and higher job-rich growth is positive.

In commenting on the SONA, which was delivered on 7 February, Prof Raymond Parsons, economist of the NWU Business School, says the South African economy is indeed eventually capable of even much higher economic growth than 3% if the right choices are made.

Although it is still painful for business and consumers, the decision by the National Energy Regulator of South Africa (Nersa) to allow a much lower increase of 12,7% in Eskom tariffs, instead of the 36% previously sought by Eskom, is a significant outcome.

Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says Nersa has acknowledged the critical inputs it received last year from extensive public hearings on Eskom’s original massive application and its potential socio-economic impact.

The better news on the inflation front is gradually being translated into lower interest rates, thus modestly easing borrowing costs for businesses and consumers. At its latest meeting, the Monetary Policy Committee (MPC) again – by a four to two vote – cut interest rates by another 25 basis points (bps).

In commenting on the latest decision by the MPC to once more reduce the repo rate by 25 bps, Prof Raymond Parsons, economist from the NWU Business School, says it was widely expected.

Success awaits those who are bold enough to seek challenges and embrace opportunities. There was no shortage of such people when the North-West University (NWU) launched its 2024 MBA Summer Study School at the Khaya Ibhubesi conference centre in Parys on 27 January.

The Summer Study School will conclude on Friday, 31 January and brings together MBA students for a week filled with information sessions, guest speakers, networking sessions and so much more.

The unexpected and disappointing gross domestic product (GDP) growth figures for the third quarter of 2024 confirm the extent to which South Africa’s growth prospects remain vulnerable to negative factors such as adverse weather conditions, weakened exports and other lagging sectors.

On Thursday, 28 November the North-West University (NWU) conferred an honorary doctorate on the renowned economist Prof Raymond Parsons.

The honorary doctorate was awarded in recognition of the exceptional contribution Prof Parsons has made to the country throughout his distinguished career as an organised business leader, academic, media personality, economic commentator and author. Among his many achievements is the groundbreaking work he has done on the development and refinement of the NWU Policy Uncertainty Index, the first of its kind in South Africa.

It is good news for business and consumers that the repo rate was unanimously reduced by 25 basis points (bps) on 21 November.

In commenting on the latest Monetary Policy Committee (MPC) statement to again reduce the repo rate by 25 basis points (bps), Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says it was widely anticipated that the MPC would continue its cautious stance on easing monetary policy.