The finance minister Pravin Gordhan has a busy week ahead as he chairs a number of meetings, starting this morning where he will be hosted by the Johannesburg Chamber of Commerce and Industry, to share insights on building collective action for inclusive growth.
Alarm bells are looming for the country’s economy and how it will dodge a junk status downgrade in December. Major institutions such as the International Monetary Fund the World Bank, SA Reserve Bank and the national Treasury have all revised SA’s growth downwards.
Pravin Gordhan will also deliver a keynote address at the Nedbank group’s annual investment summit on the role of business in securing a more prosperous and inclusive future for all South Africans.
This will be followed by another launch of a bold initiative that aims to provide solutions to South Africa’s skills development challenges. “It is time for more action to change the stagnate economy. Policy makers must come with good remedies that will lead to light at the end of the tunnel, otherwise the country’s economy will go further down the drain,” Iraj Abedian, chief executive of PanAfrican Capital Holdings, said.
“The economy is stagnating. Let’s try to move on.” Ian Cruickshank, chief economist at IRR, said, “Despite all his (Gordhan’s) efforts engaging with captains of industry, I think South Africa is heading for a recession and an investment downgrade in December. This is a double whammy that the country will not avoid. “We are also heading for huge problems of a twin deficit.
Our budget and current account deficits will widen.” For example, the JSE announced that between June and July there had been a huge foreign capital outflow.
“If that is the case, how are we going to finance our current account deficit?” “We are at risk of drowning in debt and there is no answer in the short term,” he said.