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Gigaba needs credible team before convincing business and labour - economists

12 June 2017 7:00 AM
Economists Lumkile Mondi and Dr Iraj Abedian say Finance Min. Malusi Gigaba must critically do more to reassure South Africans.

Economists Lumkile Mondi and Dr Iraj Abedian say Finance Minister Malusi Gigaba needs to do more to reassure South Africans amid the current economic and political challenges.

Dr Abedian says it will take time to develop trust in the Finance Ministry and adds that experience and credibility are the two most important criteria for its leadership.

Abedian says that Gigaba needs to surround himself with a credible team that has impeccable expertise in fiscal matters before trying to convince South Africa's business community of stability.

Both economic analysts have lamented Gigaba's lack of experience after Moody’s downgraded South Africa’s sovereign credit rating to BAA3 with a negative outlook on Friday.

Last week, Stats SA also announced that the country has entered a technical recession.

Neither the minister or his deputy have the prior experience in anything financial and, unfortunately, they have left a trail of doubt, speculation and suspicions where they have been involved.

Dr Iraj Abedian, chief economist at Pan African Investment Research

It affects their reputation.

Dr Iraj Abedian, chief economist at Pan African Investment Research

Meanwhile, Mondi says Gigaba's lack of experience and the ruling party's inability to deal with corruption is failing the economy and Constitution.

He says the downgrade by Moody's was not surprising, in light of government's failure to respond to the leaked Gupta emails.

South Africans doubt that this Zuma presidency can create certainty and build credibility... There has been no actions at all.

Lumkile Mondi, economist

According to Mondi, there is currently very little legitimacy from President Jacob Zuma's current administration.

The two economists took a closer look at the governance at state-owned entities, corruption and current political turmoil.

Take a listen to the full discussion:


This article first appeared on CapeTalk : Gigaba needs credible team before convincing business and labour - economists


12 June 2017 7:00 AM