Jonas: SA's erratic political climate undermines business & public confidence

The deputy minister spoke at the 2016 Association of Black Securities & Investment Professionals Conference.

FILE: Deputy Finance Minister Mcebisi Jonas during press briefing on 16 March 2016. Picture: Screengrab

JOHANNESBURG – Deputy Finance Minister Mcebisi Jonas says the erratic political climate in the country has undermined business and public confidence.

Jonas was speaking at the 2016 Association of Black Securities and Investment Professionals Conference, in Sandton this morning.

The deputy minister blew the whistle on an alleged R600 million offered to him by the Gupta family, if he accepted the position of finance minister.

The claims are contained in the Public Protector’s state of capture report, which has recommended a judicial commission of inquiry into the possible influence of the family in state affairs.

Jonas says while economic growth has been slowing since 2011 and the country is on a downward phase on the business circle, political developments are making matters worse.

“Our erratic politics also are not helping because, in a sense, they undermine business confidence and public confidence. But also creating uncertainty.”

He says he agrees with Finance Minister Pravin Gordhan that the country is at a crossroads.

“Continuation of our existing growth model, with low growth, inherent structural inequality, will increase spending pressures on welfare, social security in debt servicing.”

Recently Ratings agency Moody’s said political infighting posed a risk to the country’s credit rating.

Moody’s is due to review the country’s rating by the end of this month.

(Edited by Leeto M Khoza)