Gordhan defends need for SA to deal with ratings agencies

The Finance Minister says that Treasury has spoken to Standard & Poor's and Fitch and Moody’s after the Budget Speech.

Finance Minister Pravin Gordhan at the 2017 Budget media briefing in Cape Town on 22 February 2017. Picture: GCIS.

PARLIAMENT - Finance Minister Pravin Gordhan says that Treasury has spoken to ratings agencies Standard & Poor's and Fitch and Moody’s after Wednesday's Budget Speech.

He's also defended the need for South Africa to deal with the agencies after a comment from a member of a parliamentary committee that the firms are infringing on the country's sovereignty.

The minister also says South Africa must choose a new economic model that will lead to a different approach to restructuring the economy, but low economic growth will not be “helpful” in achieving consensus.

Gordhan says growth without transformation, would only reinforce inequitable patterns of wealth.

“We should be talking about the political economy of the different situations in which we find ourselves in and the politics of the day, as you can see in the western part of the world, has a key influence over economic policy choices that countries are making.”

(Edited by Zamangwane Shange)