South African Finance Minister Malusi Gigaba. FILE PICTURE
International ratings agency Fitch said yesterday the economic strategy released by Finance Minister Malusi Gigaba last week was unlikely to boost growth, because many of the measures had been announced previously. Last Thursday, Gigaba laid out a 14-point programme that included the possible sale of assets and partial privatisation of state-owned firms. The plan received a lukewarm reception from investors locally and abroad.

“The South African government’s newly announced Inclusive Growth Action Plan is unlikely to significantly boost economic growth prospects,” said Fitch, which rates the country’s local and foreign debt a single notch below investment grade.
Fitch said it had halved its growth forecast for this year to 0.6percent from 1.2percent previously because of weak economic performance and political uncertainty. Fitch has warned that changes to mine ownership laws were proof that economic policy was tilting towards a radical, populist direction. -