South Africa is doing well‚ despite hurdles: Finance Minister
Despite a few “hurdles” currently facing the country‚ the positives going for it “far” outweigh them‚ Finance Minister Pravin Gordhan said on Tuesday. Gordhan was speaking at a media briefing at Montecasino in Fourways‚ Johannesburg‚ where he was hosting a breakfast session ahead of the World Economic Forum annual meeting that will take place in Davos‚ Switzerland‚ in January. “The positives going on for us in South Africa far overwhelm the negatives. This government has been a very responsible government for 15 years to 20 years.“… we talk about strong institutions‚ robust legal frameworks‚ [and] well developed capital markets. “That we have much of our borrowing in rands‚ so that when the exchange rate changes as it has in many other countries‚ it doesn’t have a negative effect. Our maximum borrowing in Euros or dollars is 10 %. The maturity of our bonds is 14 years‚ not short term.“Our share of infrastructure spending to GDP‚ exceeds those of other countries. We have a good environment for business and at the same time we admit‚ there are red tape issues‚ reform issues and facilitation issues that need to be addressed but the good thing about South Africa is we put it frankly on the table. We know they are there. Gordhan said some of these challenges are “heavier” thus taking time for the government to deal with them.“Not every hurdle can be kicked away like a balloon can and disappear out of your way. Some of them are a little bit heavier and it takes time to do some things.The country‚ according to Gordhan‚ needs more exports‚ both from the manufacturing and innovation sides‚ so that the country can reduce the current account deficit.