SA can get out of junk status – but we’ll do it through radical transformation: Gigaba
Finance Minister Malusi Gigaba believes that the country can regain its investment-grade rating without compromising on the radical transformation of the economy.
Speaking with Reuters at the World Economic Forum for Africa in Durban, Gigaba confirmed that even with ongoing concerns from rating agencies, he was positive that the country could recover from junk status.
“The political and economic elites cannot engage in banal debates about what name we must give the economic transformation that we seek,” Gigaba said.
“At the heart of what we need to achieve is to change the structure of production and change the patterns of ownership and make those who are marginalized, most of whom are black, feel they are part of the economy.”
“What we are aiming for is a growing economy that is transforming and a transforming economy that is growing. You cannot have an either-or question. It’s a luxury we can’t afford,” he said.
Gigaba’s comments have continued to raise concerns with investors and ratings agencies, as it appears government may shift away from the fiscal consolidation outlined in the February budget.
Other ANC ministers present at the WEF meetings in Durban have also continued to push radical economic transformation of the economy.
On Wednesday small business minister Lindiwe Zulu stated that President Zuma would fast-track Constitutional amendments to allow for the redistribution of land without compensation, while
Read: Why SA’s smartest investors are keeping an eye out for what lies beyond junk
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