All in all, this is creating a propitious environment for firms to undertake new investment. The more the real cost of capital falls, the greater the number of investment projects that will break even. And the more the recovery picks up, the greater the confidence firms will have to take such risky decisions. This also applies to firms in this country.
Not all the developments in South Africa over the past three years were positive and some major challenges still remain for the future. On balance, however, all reasonable South Africans will agree that the reforms in the country succeeded in averting a major disaster and in opening up many new opportunities.