Gordhan says Moody's decision gives SA time to change its ways

Gordhan delivered the keynote address at the opening of the Public Finance Management Conference in Sandton where investors and public finance officials meet to discuss finance management.

Moody's adjusted the outlook for South Africa from stable to negative, but confirmed the country's credit rating has been confirmed at Baa 2.

Gordhan said Moody's decision has granted the country the necessary breathing space to change its ways and attract proper foreign direct investment.

The minister said investor confidence could only be restored through proper governance and good management of public funds.

Gordhan added that global economic turmoil has also taken its toll.

"We are living in a very uncertain world at the moment. It's a very volatile economic environment that changes quite rapidly depending on what's happening in that environment. Secondly, we ourselves are amongst those that have not recovered adequately from the financial crises as indeed, in fact, most of the world and we have our own, what we call, structural constraints," Gordhan said.