Financial performance Let me end with three related issues on investment: •  The first is the concept of the real cost of capital. Provincial companies fund a lot of investment through “soli” which is given free of interest. If we had borrowed these funds what would be our total cost of capital?
The rewards for macroeconomic discipline, however, build up over time and it is important to recognise where we are now beginning to see the real benefits come through. On the fiscal side, the National Treasury’s commitment to maintaining budgetary control and strengthening the public finances is now providing the base for significantly increased expenditure on key public services without in anyway jeopardising fiscal discipline.