Cape Town - New Minister of Finance Malusi Gigaba now faces the stark realities of South Africa's economic situation, according to Ian Matthews, head of business development at independent investment bank and corporate finance advisory firm Bravura.
He was reacting to Gigaba's comments after Standard & Poor's downgrade of SA’s long-term foreign currency rating to sub-investment "junk status" on Monday evening. The ratings agency said the massive Cabinet reshuffle shortly after midnight on Friday has put policy continuity at risk.
Gigaba admitted that the downgrade will impact private investment, but said he will not be distracted by "external issues" in the quest to radically transform the SA economy so that "it works for all South Africans". In his view, this includes enabling SA to rely on its own resources and for government to live "within its means".