Gigaba prepares for rating agencies’ visits

Finance Minister Malusi Gigaba is working with a team of ministers to prepare government for the upcoming visits of credit ratings agencies in May‚ June and later in the year.

The visits follow the recent downgrade of SA’s sovereign credit rating to subinvestment grade. The agencies are expected to interact with a number of organisations and government leaders during their visits to the country.

Finance minister Malusi Gigaba

Communications Minister Ayanda Dlodlo said at a post-Cabinet media briefing on Thursday that there were “extensive” discussions in Cabinet on what SA needed to do to reverse the downgrades.

President Jacob Zuma cautioned about ministers making conflicting statements.

Cabinet reiterated its commitment to the fiscal policy trajectory outlined in the 2017-18 budget at its meeting on Wednesday.

It also committed itself to the implementation of reforms to improve the governance of state-owned companies; maintain the expenditure ceiling; and ensure the stabilisation of government debt.

The government believed its programme to fast-track the implementation of structural reforms to boost economic growth would address some of the concerns raised by investors.

Gigaba briefed Cabinet on the recent meetings of the International Monetary Fund (IMF) and the World Bank that he attended as well as his investor roadshow and the World Economic Forum on Africa conference.

Dlodlo said Gigaba had tried to allay the concerns and fears of investors that a new policy would be introduced because there was a new finance minister.

“ANC policy is what guides our policy framework. The ANC goes to conference every five years and none of us have the authority to change policy midstream unless there are serious problems that affect our people in the implementation of that policy.

“Minister Gigaba has no intention to change anything that was implemented by his predecessor in terms of policy.”

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