Gordhan: SA needs a shift in mindset
Finance Minister Pravin Gordhan says all South Africans play a role in determining the future of the country's destiny, adding that government can't solve the economic challenges on its own.
Gordhan was hosted by Media24 in Cape Town this morning, after presenting the Medium Term Budget Policy Statement in Parliament yesterday.
According to Gordhan, a major shift in mindset is needed in the country as all South Africans play a role in growing the economy. He says there has been a call from various sectors for the challenges of inequality and poverty to be placed above politics.
South Africa is expected to record less than one percent economic growth in 2016. This is coupled with fears over a possible ratings downgrade in December.
When asked if he thinks yesterday's budget allayed the fears and satisfied the ratings agencies, Gordhan simply replied: "I don't know, I haven't spoken to them."
Ratings agencies, along with investors, want a number of assurances.
"People want to know whether if they lend you money it's safe, and the simple proposition is: are willing and able to pay," says Gordhan.
He says the ratings agencies further want to know whether the political situation will destabilize, where growth will come from and whether they can rely on institutions.
Amid the sluggish growth, Gordhan yesterday also announced South Africa's debt is near the 50% mark.
He adds however government's pre-occupation is not with a credit rating, but to get the South African economy on a steady growth path.
The minister also avoided questions regarding his court appearance next week on charges of corruption.
He previously described it as political mischief.
"The CEOs that have come out in support of this issue have called it politically motivated. I leave it to you as citizens to work that out," he says.