Gigaba: I am up to the task
Real transformation and stability
NEW finance minister Malusi Gigaba signalled a swing to the left on Saturday, saying “we need to radically transform the South African economy” while pledging to maintain fiscal stability.
Gigaba also said during a televised news conference that he was committed to protecting SA’s cherished investment-grade credit ratings, which analysts have said are threatened after the removal of his predecessor Pravin Gordhan.
“The ownership of wealth and assets remains concentrated in the hands of a small part of the population. This must change,” Gigaba said.
Gigaba said he would not be “reckless” when it came to funding for controversial plans to add more nuclear power to SA's energy mix.
“The principle stands that it will be implemented at a pace and scale that the country can afford … I don’t think we will or should try to be reckless about it,” Gigaba said in response to a question about the programme.
He acknowledged the political challenges he faces. President Jacob Zuma’s midnight sacking of the widely-respected Gordhan shook markets on Friday, undermining his authority and threatening to split the ANC.
“I am fully aware that we are at a highly politicised, polarised and contentious moment in the history of our young democracy. I will not be distracted by external issues,” Gigaba said.
But he said fiscal policy would not be done simply in the interests of big business and capital.
“For too long, there has been a narrative or perception around Treasury, that it belongs primarily and exclusively to ‘orthodox’ economists, big business, powerful interests and international investors. With respect, this is a people’s government,” he said.
The government “will use state procurement strategically and vigorously, to ensure localisation, promotion of black-owned, womenyouth-owned enterprises and SMMEs, and to facilitate industrialisation,” Gigaba said.
“We remain unapologetic about using the state’s spending power to grow black enterprises.”
While he was shocked at his appointment as finance minister, Gigaba said he was “up to the task” and he will work to allay fears of investors and ensure the Treasury moves forward in a “prudent manner”.
There are no projects that Zuma had asked Gigaba to “rubber stamp” and no court cases against the Gupta family will be dropped, he said.
Gordhan came under pressure from members of the family to intervene after the country's biggest banks shut their company accounts, eventually leading Gordhan to ask the courts to rule that he had no jurisdiction over who banks choose as clients. — Reuters