Moody’s placed South Africa’s credit rating on review for a downgrade this month, after two other major agencies already cut the country’s rating. The top order of business for new Finance Minister Gigaba has been to reassure the ratings firms, which are concerned about South Africa’s political stability and fiscal discipline.
Gigaba said, however, that he would not set a timeline on when he expects the country to see its investment grade rating restored.
“I’m just going to do what I need to do as the minister of finance to strengthen the South African economy, provide prudent fiscal management and show that investments grow in the country, that our economy grows and we’re able to address issues of inclusive growth and bring our economy back to health,” Gigaba said.
Zuma and his surprise termination of Gordhan have sharply divided the governing ANC party, of which Zuma is a long-standing member. Widespread, multi-racial protests have called for Zuma’s resignation in recent months.
South Africa was once heralded as a leader among developing countries — in 2010, the year after Zuma took office, it became the “S” in “BRICS,” joining Brazil, Russia, India and China in the elite acronym of emerging-market superstars. But in 2017, South Africa is saddled with 25 percent unemployment and is forecast to grow by less than 1 percent for the second consecutive year, according to the World Bank.
