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.
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