15 March 2016
South Africa is a steady, well-functioning economy – that is the message the National Treasury conveyed to international investors during a roadshow to London, Boston and New York last week.
Finance Minister Pravin Gordhan headed the group of business leaders, three labour federations and senior officials from the National Treasury and the South African Reserve Bank to engage with international investors after the tabling of the 2016 Budget.
See what the minister said:
The roadshow was also a means to provide updates on the latest economic developments in the country and plans for the medium term. Meetings were held with over 250 investors, some with significant exposure to South Africa. Among the issues raised by the investors were:
- Fiscal risks and strains in balance sheets of state-owned companies;
- Recent developments on sovereign credit ratings;
- Slow economic growth;
- Issues relating to business and investment confidence;
- Regulatory clarity, labour and monetary policy and
- The political environment.
One unified voice
“Our main message to the investors was that as a resilient nation, South Africa has the potential to overcome its immediate challenges,” the Treasury said. “What is required is for (the) government, labour and business to work together on concrete steps and actions that will be taken to lift economic growth.
“The world economic outlook is uncertain and it is crucial that the country be seen to be united and focused on tackling its socio-economic challenges.”
The next few months would be critical, the Treasury said, as it mapped a path for higher economic growth, to preserve the investment grade rating, and address poverty, unemployment and inequality.
Source: Department of Treasury