The National Treasury’s director-general, Dondo Mogajane, will tomorrow lead a delegation of senior officials on a week-long series of meetings with investors in London and New York. Photo: Pando Jikelo/African News Agency (ANA)

JOHANNESBURG – The National Treasury’s director-general, Dondo Mogajane, will tomorrow lead a delegation of senior officials on a week-long series of meetings with investors in London and New York. 

This as the government mandated HSBC and Standard Bank to arrange a series of fixed-income investor update meetings, which would also be attended by representatives of the Department of Public Enterprises and the SA Reserve Bank (Sarb).

These meetings form part of the Treasury's regular investor relations programme and follows the Medium-Term Budget Policy Statement (MTBPS) that was delivered last month by Finance Minister Tito Mboweni. The Treasury did not want to elaborate on the agenda of the meetings, except to say that the MTBPS would the main point of discussions. 

“The discussions will be based on published information and are meant to address any investor question by providing clarity on freely available data and publications,” it said.

“The content of the discussion and plans by South Africa would not differ from that which was published in the MTPBS document.”

In his MTBPS, Mboweni painted a dire picture of the country’s finances, as the consolidated budget deficit was projected at 5.9 percent of gross domestic product (GDP) and the national debt exceeded R3 trillion.

Eskom remains the single biggest threat to the fiscus due to its escalating debt of R450 billion, or 15 percent of GDP. 

In its review on Friday, Moody’s changed the outlook on South Africa's ratings to negative from stable and affirmed the Baa3 long-term foreign-currency and local-currency issuer ratings.

The ratings agency said its decision to change the outlook to negative from stable reflects the material risk that the government would not succeed in arresting the deterioration of its finances through a revival in economic growth and fiscal consolidation measures. 

However, the ratings agency acknowledged the Sarb’s demonstration of a good track record in implementing credible and effective monetary policy and preserving financial stability.

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