Downgrade a ‘setback’ but state focus is on inclusive growth – Gigaba

The move by S&P Global to cut South Africa’s credit rating to below investment grade was a setback, Finance Minister Malusi Gigaba said on Tuesday.

S&P on Monday night downgraded South Africa’s international credit rating to “junk” status for the first time since February 2000, mainly due to concerns related to the reshuffle of the Cabinet, including the change to the finance minister, last week by President Jacob Zuma.

Moody’s Investor Service also on Monday placed its credit rating of South Africa on review for a downgrade.

Gigaba told the media on Tuesday that 10% of public debt of R2.2 trillion was held in euros or US dollars.

The remaining government debt was held by local investors and S&P had kept South Africa’s local credit rating at investment grade, he added.

Gigaba said that the government remained committed to fiscal discipline and “inclusive growth”.

“The government stance remains the same,” he added.

Gigaba said that he would be acting with urgency to accelerate inclusive growth.

Gigaba said he knew about the impending downgrade on Friday – the day he was sworn in as the new finance minister, replacing Pravin Gordhan.

	Justin Brown Business editor City Press p: 0117139001 w: www.citypress.co.za  e: justin.brown@citypress.co.za
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