Financial services provider Old Mutual Investment says trade unions should support a government that will ensure the protection of workers’ pension funds and the creation of a conducive business environment.
This comes as the SACP rejects the possibility of a government that would include the Democratic Alliance (DA).
Old Mutual’s portfolio manager Jason Swart says the labour federations must also seek a government that will promote small-medium enterprises.
“For Cosatu, one of the priorities should be the value of the pension funds as well as some stability and confidence in the business environment. Both of those would be conditional to a more centre-right government. But this is a political space, so there’s a lot of allegiance. We are hopeful that they (will) reach a compromise that promotes both skills development and entrepreneurial small businesses,” he says.
Old Mutual also says the markets will welcome a government of national unity as long as it results in economic growth and increased employment.
The investment group says while the ANC government offered policy certainty, it failed to deliver economic growth.
The financial services provide says while this period demonstrates a change in the country’s political landscape, it has the potential to address some of the structural issues facing South Africa.
The National Assembly is expected to hold its first sitting on Friday, June 14 with markets likely to watch the developments closely.
