Newly-appointed Finance Mininster Malusi Gigaba’s statement points to a disregard for what a downgrade will do to the cost of capital and ability to spend on crucial infrastructure and social services, and highlights the spurning of the global financial system prevalent in some ANC quarters, writes Daniel Silke.
Barely 24 hours into his new job as Minister of Finance, Malusi Gigaba clarified two important aspects of his new appointment which represent major shifts from his predecessor. Both aspects of the new Gigaba era should leave South Africans concerned and calling for greater scrutiny than ever before on government.
Firstly, Gigaba unambiguously placed the highly contentious nuclear power build project firmly back on the agenda. Pravin Gordhan had certainly been reluctant to commit to this level of capital spend and had largely kicked for touch on the issue in the budget in February – a sure sign it was something he just did not want to deal with.