South Africans must retain optimism: New Finance Minister
December 14, 2015, 11:49 am

New South African Finance Minister Pravin Gordhan (2nd from left) at a media briefing in Pretoria, South Africa [Image: GCIS]

Gordhan, returning for a second stint at the Treasury, was speaking at a media briefing in Pretoria on Monday.

“We take account of the concerns of rating agencies and investors and we shall endeavour to protect the investment,” he said.

In attempts to assuage fears of investors, Gordhan said the government will “protect all those invested in the South African economy”.

“We must prove credibility to those who lend us money. They must have confidence that we will pay it pay it back,” Gordhan said.

He also vowed that South Africa “will not cut pro-poor programmes”.

“We will stay the course of sound fiscal management. Our expenditure ceiling is sacrosanct. We will only spend more if we raise more revenue,” he said.

“We are going to redouble our efforts to ensure efficiency of expenditure across the public service,” he added.

South Africa’s rand leapt on Monday after President Jacob Zuma named Gordhan as the new Finance Minister.

By 0854 GMT on Monday, the rand had strengthened by 5.07 per cent against the dollar to 15.0850, recouping some losses suffered last week.

“Our government has advanced policies that are meant to address inequality, reduce poverty and unemployment,” Gordhan told journalists.

He also urged South Africans to “retain their optimism” as he would implement policies aimed at creating favourable investment conditions.

Gordhan was Finance Minister of the country from 2009-2014.

Earlier last week, South African President Jacob Zuma’s sacking of Gordhan’s successor Nhlanhla Nene in favour of a relative unknown David van Rooyen had shocked investors.

Markets had reacted unambiguously, with the rand plunging to a record low against the dollar, losing just over five per cent since Nene was removed.

TBP