The country has been thrown into a period of anxiety and uncertainty due to the inconclusive election outcome, which has led to an intense time of negotiations between political parties in a bid to establish a new government.
In this context, it is worthwhile to consider the bedrock of sound institutions that contribute to a sense of stability and inspire a modicum of investor confidence that recent events have otherwise rocked. These institutions have provided and continue to provide a sense of continuity and reassurance.
The Electoral Commission of SA, having just overseen an election involving about 16-million voters and thousands of voting stations throughout the country, is one of them. Yes, there were glitches in the electoral process and, yes, several political parties have lodged objections on the margins, but the elections ultimately produced a credible result.
Another key institution that has stood the test of time, staunchly maintaining its independence and its commitment to inflation-targeting in the face of political headwinds, is the Reserve Bank. Stability at the Bank has been assured by the reappointment of governor Lesetja Kganyago for another five years until 2029. He has exercised a steady hand at the institution.
Stability at the Bank has been assured by the reappointment of governor Lesetja Kganyago for another five years until 2029.
Then there is the SA Revenue Service (Sars), which was rescued from the state capture insidiously imposed by former commissioner Tom Moyane through the able stewardship of his successor, Edward Kieswetter, who has re-established the tax authority on a sound footing. Kieswetter has taken care to implement a succession plan and has agreed to stay on for a another two years until April 2026 to ensure a smooth handover and to cement the turnaround of the revenue service.
Crucially important has been the National Treasury, which has kept SA on a sound fiscal path despite populist pressures for the government to spend beyond its means. Fortunately, the attempt by former president Jacob Zuma to capture the Treasury by the appointment of his lackey as finance minister was overturned by the loud rejection of the plan by the markets.
Amid the political negotiations under way, some uncertainty exists about who the future finance minister will be. The incumbent, Enoch Godongwana, has indicated his willingness to continue in the post and it is likely that the ANC will insist on it in the negotiations under way as it would provide much-needed certainty to investors and the markets.
Theoretically at least, the rule of law prevails in SA, though frequently the wheels of justice turn extremely slowly. The process of replacing chief justice Raymond Zondo when his term comes to a close at the end of August is under way with the presidential nomination of deputy chief justice Mandisa Maya to replace him.
The key to the integrity of the criminal justice system is the effectiveness of the National Prosecuting Authority (NPA), which has not performed as well as one would have wished but will be bolstered by its Independent Directorate achieving permanent status under law.
One can also mention Stats SA, which this week produced the latest GDP figures. Stats SA successfully concluded the huge 2022 population census and regularly produces statistics on the economy and the labour market that are vital for policy-making.
These are the lights that shine amid the doom and gloom that often prevails over successive governance failures on which voters have given their electoral verdict.
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