President Cyril Ramaphosa said on Monday the successful national and provincial elections held in May and the formation of the Government of National Unity (GNU) have positively affected business confidence.

Ramaphosa wrote in his weekly letter to the nation that the progress government has recorded in its reform process has also contributed to the improved sentiment.

He highlighted that the latest Business Confidence Index published by the South African Chamber of Commerce and Industry pointed to an increase in business confidence since the elections.

Ramaphosa said this sentiment was evident in the Johannesburg Stock Exchange’s All-Share Price Index, which he noted had increased by about 8% between May and July.

“This is welcome news, particularly in light of the most recent employment figures released by Statistics South Africa, which show that unemployment remains extremely high at 33.5%,” he said.

He acknowledged low levels of business confidence over the last few years, and said government was now seeing a growing confidence among investors, businesses and citizens about the prospects for the country’s economy.

“Business confidence was negatively affected by the prolonged electricity crisis, State capture, concerns about corruption, the decline of State-owned enterprises and the manner in which law enforcement agencies had been compromised,” he said.

He noted investors’ concerns about obstacles to growth, such as delays in the release of broadband spectrum, inefficiencies in ports and rail operations, and regulations that have slowed down licensing processes.

Ramaphosa said government had shown its determination to tackle corruption, noting that the National Prosecuting Authority (NPA) and Special Investigating Unit as well as the reinvigorated Hawks, had brought several high-profile cases to trial.

He explained that the permanent establishment of the NPA’s Investigating Directorate had given further impetus to the fight against corruption and that crime was being tackled.

“We have now [also] had more than 140 consecutive days without loadshedding. There has been a huge increase in new power generation capacity. Investors have seen the growth opportunities in the far-reaching energy reforms we are undertaking. Just last week, I signed into law the Electricity Regulation Amendment Act, which will enable the establishment of a competitive electricity market,” he explained.

With the progress in the electricity sector, Ramaphosa is confident that government can also overcome the freight rail and ports challenges.

Transnet’s recovery plan is showing progress, he said, with the private sector providing significant technical support and resources.

He said changes were also made to immigration regulations that make it easier to attract skills, investment and tourists into the country.

“We have also significantly speeded up approval processes for water use licences and energy projects, and released broadband spectrum to unleash the potential of our telecommunications industry,” he said.

Ramaphosa pointed out that last week government held a meeting with business leaders, saying business expressed optimism about the recovery and growth of the country’s economy.