Gigaba explains ‘radical economic transformation’ to investors

A special Cabinet meeting is due to take place on Wednesday to address the recent credit ratings downgrades by S&P and Fitch.

Speaking to investors at the Development Bank of SA (DBSA) on Wednesday‚ Finance Minister Malusi Gigaba said: "The president’s decision to convene a special Cabinet meeting arises from the two recent downgrades and his feeling that we need to take Cabinet on board and into our confidence with regards to the implications of this downgrade."

Gigaba said investors wanted clarification on what the ANC meant by "radical economic transformation".

"What I assured them is that when we talk about inclusive growth and the package of policies‚ it’s exactly the same programmes that we all are concerned about — to create jobs‚ to address poverty‚ to address inequality.

• Gigaba: SA investors want clarity on ‘radical economic transformation’South African investors want the ruling African National Congress to explain in detail what “radical economic transformation” as stated by the government in recent speeches means‚ Finance Minister Malusi Gigaba said on Wednesday.

We want programmes that are going to include as many people who are excluded from economic participation as possible‚" Gigaba said‚ adding that there was no disjuncture between growing the economy and fostering inclusive growth.

"Everything we do must address the fundamental need to grow the economy and grow it inclusively ... because ultimately what we need is accelerated growth."

• Fitch follows S&P in downgrading South Africa banks after sovereign moveRatings agency Fitch downgraded five South African banks on Tuesday in a widely expected move, days after it cut the country's credit rating to sub-investment grade.

Chief economist at Investment Solutions‚ Lesiba Mothata‚ said: "The sense we got is that the finance minister‚ over the last 10 days‚ has engaged a lot of people and has planned a road show. Investors have found a lot more comfort from what’s come out of today."

- TMG Digital/BusinessLIVE