Gigaba tones down “radical” talk to ease investors: report
Finance Minister Malusi Gigaba is seeking to calm investor fears over his pledge of “radical economic transformation”, toning down the rhetoric just over a month into the job, to talk more of “inclusive growth”.
According to a report by Reuters, Gigaba has in recent speeches used language that appears aimed to calm nerves, without specifying any concrete policies.
“His view is that investors in business should not be fearful when they hear the word ‘radical’ and think that it means there is going to be some irresponsible approach to government programmes,” said spokesperson, Mayihlome Tshwete.
“And on the other side, those who hear ‘inclusive growth’ should not feel that it’s a business term that doesn’t relate to the masses of the people.”
Economists have also noted in Gigaba’s change in tone.
“He is trying to calm fears…that it doesn’t necessary mean there is going to be far-reaching changes in the way fiscal policy is conducted,” said BNP Paribas Securities’ Jeffrey Schultz.
“Radical economic transformation sounds so alarming to the investment community and the term inclusive growth seems, on the face of it, a little bit more palatable.”
Reuters also noted that some analysts had previously said talk of “transformation” was meant to appease ANC supporters after the party lost key cities – including the capital Pretoria and economic hub Johannesburg – at local elections last year.
“I think that it is the rhetoric of desperation when you have a hollow buzz phrase like that without any substantive detail,” said Martyn Davies of Deloitte.
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