Finance Minister Trevor Manuel's further committed focus on the improvement of the lives of all South Africans through the policies and expenditure guidelines set out in the national budget address today is to be applauded.

"The Finance Minister set off on a particular path years ago and with each year's budget makes further progress in achieving the goals set at the birth of a democratic South Africa. However, it is at the delivery level that South Africa falls short and fails communities on various fronts. We need improved efficiencies. Increased budgetary allocations are only useful if the money is actually spent on the projects outlined by the Minister," says Jan van Niekerk, Chief Investment Officer of private client wealth management company Citadel.

"The Minister's policies and sound fiscal management over a number of years cannot be faulted. The increased allocation for education, health care and crime prevention will be welcomed by all South Africans. But the citizens of the country want to see that money actually improving their situations," Van Niekerk said.

"No significant changes that will upset taxpayers were made. Two aspects likely to pique the interest of investors is the change in the way dividends are taxed, where the effective tax rate on dividends is dropped from 12.5 to 10%; and the abolishment of retirement fund taxes. We welcome these changes as it will lead to better returns for South African investors over time," Van Niekerk said.

ISSUED BY:

CITADEL
Private Client Wealth Care

For further information please contact:

Jan van Niekerk
Chief Investment Officer
(021) 940 7100 / 083 285 6596
janvn@citadel.co.za

OR

Daleen Cornelissen
Media Liaison
(021) 940 7200 / 083 302 0827
daleenv@citadel.co.za