Progress in talks on economy

President Jacob Zuma. Picture: Independent Media

President Jacob Zuma. Picture: Independent Media

Published Apr 28, 2016

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Cape Town - Finance Minister Pravin Gordhan and chief executives of top companies will next week report back to President Jacob Zuma on significant progress made to reignite growth in the economy.

The report-back by the executives comes after business this week indicated progress in identifying areas of investment in the local economy by local businesses.

This had been a request by Zuma to business in his meetings with the chief executives over the past few months.

His first meeting was in January, followed by another last month.

He tasked Gordhan and Business Unity South Africa president Jabu Mabuza to lead a committee that would look at improving the economy to avoid a downgrade to junk status.

The meeting next week comes a month before rating agencies are to release their review of South Africa.

This week, business, including the banking sector, said significant progress had been made to fix the economy.

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Mabuza and Banking Association South Africa managing director Cas Coovadia said they had made significant progress in identifying areas of investment and job creation.

They had identified areas of investment in small and medium enterprises.

Business is also talking to the public sector about the opportunities of investment in these areas.

The meeting between Zuma, Gordhan and business would be able to give direction on tangible investment projects.

Business leaders said they would be able to announce concrete deliverables in the coming weeks based on the work done by three main work streams.

The report-back by Mabuza and Gordhan to the president comes as rating agencies are on their way to the country.

Standard & Poor’s and Fitch are coming next month to conduct a review on South Africa.

This followed an assessment conducted by Moody’s in March.

Gordhan has expressed confidence that South Africa will avoid a downgrade in June.

The South African economy has been under extreme pressure in recent times, with the World Bank, the South African Reserve Bank, National Treasury and International Monetary Fund projecting growth of less than 1 percent.

THE STAR

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