Zuma must stop government 'scoring own-goals'

10 February 2016 - 02:19 By Bloomberg and Aron Hyman

President Jacob Zuma yesterday sought to repair the government's relations with business, pledging to work more closely with companies that he described as the backbone of the economy. Zuma and cabinet ministers had talks with more than 140 business leaders in Cape Town intended to find ways of improving investor sentiment towards this country and of stimulating growth in an economy weakened by a fall in metals prices, slowing demand from China and the worst drought in more than a century.Among those at the meeting were Barclays Africa Group CEO Maria Ramos and Christo Wiese, chairman of Shoprite Holdings."There was a constructive mood in the room and I think business and government were committed to the process," Stavros Nicolaou, head of strategic trade at Aspen Pharmacare Holdings, said."The reality is that we are nearing a crisis and if the parties do not work together now it can become a lot worse."The meeting was convened almost two months after Zuma shocked investors by appointing a little-known MP, David van Rooyen, as his finance minister. The country now faces a credit-rating downgrading to junk status."Business representatives said they would support our ratings if we immediately undertake things such as fiscal consolidation," Finance Minister Pravin Gordhan said.The Reserve Bank and the World Bank expect the South African economy to grow by less than 1% this year."Ironically, December [and the sacking of Finance Minister, Nhlanhla Nene] might have been the gift that gives us the political room for a credible, fiscally sustainable promise," said Goolam Ballim, of Standard Bank.Another business leader said Zuma had been cautioned to ensure that the government stopped "scoring own-goals" with respect to the economy. ..

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