Pravin Gordhan’s victory against bogus fraud charges changes the complexion of last week’s bleak mini-budget, and confidence has grown; but SA is not out of the woods yet The negative market reaction that followed the finance minister’s medium-term update turned to euphoria earlier this week as the National Prosecuting Authority (NPA) dropped all the charges against him.The rand gained 30c on the assumption that Gordhan’s position as SA’s incorruptible finance minister is now secure.The positive market reaction also reflects optimism that SA society has risen up across political and ideological lines in support of clean government and won, striking a hard blow against state capture and corruption.With Gordhan as a proxy for fiscal rectitude, the fear was that without him holding the purse strings, SA’s fiscal framework would unravel. But though the fiscal future is infinitely more secure with Gordhan at the helm, SA is not out of the woods. Five years of low growth have pushed SA up...
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