S.A must work harder to grow economy after S&P downgrade - Gigaba
- Author: Leroy Wright Apr 06, 2017,
Apr 06, 2017, 22:55
The one-notch downgrade to BB+, S&P's highest non-investment grade, will nearly certainly force Africa's most advanced economy to pay more to borrow from its worldwide markets and possibly and may fall off global investors' radar screens.
Gigaba said that he would be acting with urgency to accelerate inclusive growth. We felt at that point it was not necessary to talk to them because we were not going to change the decision.
Gigaba said that he did not tell South Africans of the downgrade at a press briefing he held on Saturday, because he did not want to lose the trust of S&P, who he said had made known the credit downgrade in confidence.
South Africa's new finance minister, Malusi Gigaba looks on after the swearing in of cabinet ministers following a reshuffle that replaced Pravin Gordhan as finance minister with Gigaba along with various other ministers and their deputies in Pretoria, South Africa, March 31,2017.
The two will continue to meet in the coming days.
"We did not abandon radical economic transformation" Moody's has said that it will not issue a credit rating this week as it had planned. On Tuesday, Zuma thanked Gordhan and his deputy Mcebisi Jonas for the smooth transition saying the changes would bring "renewed energy" to the Cabinet and the executive.
"We acknowledge that yesterday's announcement was a setback".
Zuma says Gigaba will be going on an worldwide roadshow to assure investors, that while ministers have changed, the policies will remain the same. "Despite our current challenges‚ now is not the time for despondency...we will act decisively as government in collaboration with our economic and social partners‚" he said.
Another ratings agency, Moody's, announced on Tuesday that it has placed the country's creditworthiness on review. Ramaphosa called it "unacceptable".