The private sector
could be called upon
to generate some of
the capital needed to
support infrastructure
investment at stateowned
enterprises
(SOE) in order to avert
a further downgrade of
South Africa’s sovereign
rating.
This was one of the
suggestions made at a
meeting between the
Minister of Finance,
Pravin Gordhan, and
about 60 high-level
business people in
Johannesburg last Friday
to find solutions to
South Africa’s ongoing
economic woes. There
was also a call to transfer
some talent to the SOEs
from the private sector.
Gordhan is also
mulling over partially
privatising government’s
energy assets such as
the Kusile and Medupi
power stations.
In December, global
ratings agency Fitch
downgraded SAs credit
rating from BBB to
BBB-, just one level
above sub-investment
grade. Other ratings
agencies, Moody’s and
Standard & Poor’s,
have also hinted at
slashing the country’s
rating this year. And the
International Monetary
Fund (IMF) cut South
Africa’s economic
growth forecast to below
1% this year.
CAPTION
Minister of Finance, Pravin Gordhan.
