South Africa's Gordhan to court investors in Britain, U.S. | Reuters

JOHANNESBURG South African Finance Minister Pravin Gordhan embarks on a week-long non-deal investor roadshow in Britain and the United States on Monday as weak economic growth and ruling party tensions put the country's investment grade at risk.Africa's most industrialised economy escaped being downgraded to junk status last year. S&P Global Ratings and Fitch Ratings both rank the sovereign one level above junk, while Moody's puts it two notches higher.Moody's, which put South Africa on negative watch in its latest review, is due to revisit that on April 7, followed by S&P at the beginning of June.

Gordhan, his deputy Mcebisi Jonas and Treasury director general Lungisa Fuzile will lead a team to London, Boston and New York that will include executives from the private sector and union officials, a Treasury statement said on Saturday.The aim of the trip "is to provide an update on the most recent developments, engage constructively with investors and share government's thinking behind its' latest policy proposals," it said.

In February, Gordhan spelt out measures to help boost the economy, plug a budget deficit and tackle stubbornly high unemployment. Gordhan said the Treasury forecast growth this year of just 1.3 percent.

The economy expanded by 0.3 percent in 2016 but still well below the government's 5 percent target.Investors are also concerned about rising political tensions in the ruling African National Congress, which is due to vote in December to elect a new party leader in place of President Jacob Zuma.Prior to Gordhan's budget speech last month, financial markets had been rattled by media reports that the minister -- seen by investors as a guarantor of stability -- might be moved from the Treasury in a cabinet reshuffle. Gordhan has said it was Zuma's prerogative to fire him. (Reporting by James Macharia; Editing by Helen Popper)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Mar 25, 2017 23:30 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See