Johannesburg – Having an ally of President Jacob Zuma, Finance Minister Malusi Gigaba, in National Treasury may undo efforts towards fiscal consolidation and other improvements in state-owned enterprises (SOEs), research revealed on Thursday.
BMI Research, part of the Fitch Group Company, released research which looked at the impact of the Cabinet reshuffle on South Africa's economic outlook. The reshuffle, which took place in March, saw the president replacing former finance minister Pravin Gordhan with Gigaba.
This subsequently led to downgrades to junk status by ratings agencies Standard & Poor’s and Fitch. Moody’s, which has South Africa rated two notches above junk status at Baa2 with a negative outlook, has placed the country on review for a downgrade.