Economics: Of Hawks and doves
Finance Minister Pravin Gordhan’s message at the Business Day/Financial Mail investment summit was an optimistic one, but it was clear that the crowd was sceptical
Finance minister Pravin Gordhan, opening the first Business Day/Financial Mail investment summit in more than two decades this week, struck a surprisingly upbeat tone, even as the odds on a ratings downgrade continue to shorten.When asked specifically if there was more than a 50% chance that SA would not be downgraded this year — given poor growth, a haphazard parastatal sector and political instability — Gordhan simply answered: "Yes.""It’s going to be a tough sell, I’ll admit that, but hopefully you’ll join us," he said in answer to Sanlam iTrade head Gerhard Lampen, but speaking to the investment community."Yes, there are those difficulties you mentioned, but there are also positive things that are being developed in the country — we just need to highlight them."Another factor driving SA towards the precipice of a downgrade revolves around Gordhan himself, and a bizarre criminal investigation by the Hawks into whether he technically infringed the Public Finance Management Act and...
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