Something has to give

FINANCE Minister Pravin Gordhan jets off to Britain and the US this week as part of a desperate scramble by the ANC, senior government officials and business leaders to allay investors’ fears and stave off a possible credit downgrade.

Elsewhere in today’s paper we report that Gordhan, who will be accompanied by senior private sector business leaders, will use the trip to meet with investors and ratings agencies. He plans to discuss his 2016 budget with the jittery investors — an attempt to ward off a possible downgrade to junk status.

His trip follows similar meetings with a group of investors in Johannesburg earlier in the week. These investors also met with ANC treasurergeneral Zweli Mkhize, representatives of ratings agency Standard & Poor’s, public protector Thuli Madonsela and Reserve Bank governor Lesetja Kganyago.

They are said to have questioned President Jacob Zuma’s sacking of former finance minister Nhlanhla Nene, appointment and sacking of David van Rooyen, and re-appointment of Gordhan. The group expressed concern about the stand-off between Gordhan and South African Revenue Service boss Tom Moyane. Mkhize gave a commitment that Zuma would fix the mess.

We welcome these efforts to reassure investors — both locally and abroad — that South Africa remains committed to fiscal discipline. These high-level meetings are necessary as another ratings downgrade would damage the country.

If the government is serious about avoiding another downgrade, there has to be a realisation that the current situation in our economy cannot continue. But can Zuma pull us out of this quagmire? We remain unconvinced.