Johannesburg – President Jacob Zuma has met with senior officials to discuss the impact of SA’s credit rating being dropped to junk.
On Monday, Zuma met with Finance Minister Malusi Gigaba, Deputy Minister Sifiso Buthelezi, the Governor of the SA Reserve Bank, Lesetja Kganyago, South African Revenue Service Commissioner Tom Moyane and the Director-General of the National Treasury Fuzile Lungisa to discuss the impact of the credit rating downgrades and how South Africa should respond adequately and unite the country going forward.
This follows the recent announcements by S&P Global and Fitch Ratings that the country was being downgraded to sub-investment, or junk, status.
Both cited concerns over a recent Cabinet shuffle, which saw nine ministers including the then Finance Minister Pravin Gordhan axed.
Read also: Fitch follows S&P, downgrades SA
Concerns have been raised that this will make it more expensive for SA to borrow money, and the rand’s negative reaction is likely to weigh on the rand.
Also on Monday, Zuma reiterated that the remaining term of his government would focus firmly on radical socio-economic transformation because transforming the South Africa's economy had not achieved the desired effect.
The African News Agency reports that he said this at the annual Chris Hani Wreath Laying Ceremony in Elspark, Boksburg.
BUSINESS REPORT ONLINE