Gigaba will have to work hard to convince international investors - economist

Economist Azar Jammine says Finance Minister Malusi Gigaba would have to convince international investors of his abilities as Finance Minister.

Jammine says Gigaba also has to allay the skepticism and stigma surrounding his association with state capture and corruption.

Gigaba will be making his first international appearance as finance minister meeting his global counterparts at the IMF/World Bank Spring meetings in Washington DC on Friday.

On this international road, Gigaba is expected to restore confidence in South Africa after two rating agencies downgraded the country to junk status.

At the moment investors are more gladdened by the fact that our long-term interest rate are at 9 percent and they can get a nice return from that.

Dr Azar Jammine, Head economist at Econometrix

There are no high profile business leaders accompanying Gigaba on this trip and Jammine says it is because most of them have been against his appointment as Finance Minister from the beginning.

They worked like trojans with Pravin Gordhan for over a year to persuade rating agencies not to downgrade us and a Cabinet reshuffle put an end to all their efforts so I don't think there is much appetite amongst businesses.

Dr Azar Jammine, Head economist at Econometrix

To hear more from Azar Jammine, listen below:


This article first appeared on CapeTalk : Gigaba will have to work hard to convince international investors - economist


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