ECONOMY
TRUDI MAKHAYA: Can shaky SA afford minister’s radical transformation plan?
Current rhetoric sends mixed messages about the country’s economic policy stance and poorly justifies changes in leadership at the Treasury
By his own admission, Finance Minister Malusi Gigaba was shocked when he was informed of his appointment to the "hot seat" of managing the country’s finances. As he examines the contents of the chalice in his hands, shock might give way to horror. The ratings agencies that have made their move so far — S&P and Fitch — have not shed new light on the South African situation. For many years, the country was either poised for success or doomed to meltdown. In recent times, the trajectory has been towards a dangerous direction and an investment-grade rating was a vote of confidence.That confidence rested on perceptions about SA’s core economic institutions, which were seen as capable of managing the trade-offs it takes to maintain economic stability given the country’s historical context and current realities. That confidence has been destroyed by rhetoric that sends mixed messages about the country’s economic policy stance, and poorly justified changes in leadership at the Treasury. How...
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