Experts back GNU unity as ‘good sign’ for investment

Advocate Lavan Gopaul, Director of Merchant Afrika, has hailed President Cyril Ramaphosa’s recent visit to Washington as a step in the right direction.

Ramaphosa, accompanied by key ministers Ronald Lamola, Khumbudzo Ntshavheni, Parks Tau, and Special Envoy Mcebisi Jonas, held high-level talks with the Donald Trump administration at the White House last month.

The discussions aimed to repair strained ties and reignite economic cooperation between Pretoria and Washington.

Gopaul, speaking during a University of KwaZulu-Natal webinar on 100 days of the Government of National Unity on Thursday, said the visit could be a crucial catalyst for renewed investor interest.

"We hope that showing of unity will serve as a welcome mat for investors, and that will help us attract new investment.

"Whilst it's only one year of five that has happened, and we have four more years of challenges to go through, I believe that the likelihood of us having a government of national unity going forward — and for the future — this is likely to be the order of the day."

However, Gopaul warned that extreme currency volatility in the first half of 2025 has created uncertainty for trade. He said the rand experienced “violent swings” of up to 20% against major currencies, far outside its typical range.

"Anybody who wants to be in a position of fair trade arrangements with countries wants even currencies. They want limited volatility. And that makes it easier for transactions to happen.

"On the point of trade, that was the very reason for the volatility that we saw in the first quarter and part of the second quarter of 2025. And that's because of the rumblings that have come out of Washington and the trade talks and views of Trump's administration."

Still, he praised the outcome of the US visit, saying the delegation helped steady perceptions of South Africa in the eyes of foreign partners.

"From a business point of view, what matters in terms of that relationship-building has to do with trade. We walked away not having been worse off — and leaning towards being better off — in terms of our trade relations with the U.S. And I believe that's quite important."

Gopaul also noted that South Africa remains vulnerable to global trade tensions, especially as the U.S. continues to clash with China over economic dominance.

"As various countries posture themselves with the US, what you're likely to see are a variety of challenges that some nations may have, particularly with China. The US has felt threatened in terms of China's global expansion."

On the domestic front, he stressed that structural issues like unemployment — officially near 40% but estimated by economists at over 55% — will take time to resolve.

"A number of these are policy changes that the government of national unity will battle with, will debate about, will conclude — but may not have immediate impact from an economic sense," he said.

Political analyst and University of KwaZulu-Natal lecturer Zakhele Ndlovu echoed similar sentiments, pointing to unity within the GNU as a positive sign following the Washington visit.

"The main takeaway was seeing members of the GNU sing from the same hymnbook. Seeing the GNU partners speak with one voice is something that has got to give us hope, despite the fundamental differences within the alliance."

Ndlovu added that while it is too soon to assess the GNU’s long-term impact fully, early cooperation is encouraging.

"At least there is some light at the end of the tunnel. And now let us remember that we cannot succeed as a nation without working together."

ALSO READ