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Cape Town - Finance Minister Malusi Gigaba will attend his first international trip as the head of National Treasury without labour and business at his side.
Deputy President Cyril Ramaphosa has given Gigaba his full backing for a scheduled visit to the USA for the forthcoming IMF and World Bank Spring Meetings and further interactions with rating agencies.
Ramaphosa, who is also the chairperson of the Inter-Ministerial Committee on reform of state-owned enterprises, said his meeting with Gigaba on Tuesday is part of continuous internal government briefings.
READ: Treasury finally gets US trip, but now under junk status cloud
"We are very very supportive of the minister and his team as they are going to showcase South Africa to the world,” said Ramaphosa.
“Particularly as the new minister this is really great and exciting for us because the world will be seeing the new minister and team that have always handled these matters."
Ramaphosa and Gigaba reiterated South Africa’s commitment to inclusive growth, poverty alleviation and speedy reform of state-owned enterprises.
The meeting in Pretoria on Tuesday followed a recent briefing by Gigaba to domestic investors and the National Economic Development and Labour Council (Nedlac) special executive committee.
The Nedlac meeting was held to assess and respond to the current challenges facing South Africa after ratings agencies Fitch and S&P downgraded the country to sub-investment grade.
A high level Nedlac task team to be briefed by National Treasury was also established. It will meet regularly to co-ordinate South Africa’s all-round efforts to respond to the current challenges.
READ: SA's 'team fight back' aims to tackle economic disaster
However, Fedusa will not be accompanying Treasury on the US trip as they were not invited, said media and research officer, Frank Nxumalo.
He explained to Fin24, that as Team SA, both labour and business did not get an invitation from Treasury to participate, as was done in the past when Pravin Gordhan was finance minister.
Dr Kenneth Creamer, economist from Wits University, said it is unfortunate that Gigaba will not be flanked by Team South Africa's business and labour representatives at his upcoming meetings.
However, he said despite this omission, there are numerous signs that Gigaba is taking his portfolio very seriously and is doing his best to adapt to the rigours and responsibilities of his new position.
"He has taken time to meet a wide range of decision makers in the South African economy and has exchanged ideas with labour, business and community representatives at Nedlac," said Dr Creamer.
READ: Gigaba berates govt leaders over reckless downgrade statements
He noted that it is also significant that despite the fact that certain Cabinet ministers seem to misunderstand the gravity and negative consequences of South Africa's credit downgrade, Gigaba has made it clear that he regards the downgrade as a major set-back for South Africa.
"In fact, he has boldly stated that it is his intention to steer South Africa back to an improved credit rating. In making this commitment Gigaba has set himself no easy task, as a ratings upgrade would require a sustained improvement in South Africa's debt position and would entail him enforcing tight fiscal and governance controls, both in government departments and in state-owned companies, over a number of years, in order to rebuild South Africa's financial credibility," said Dr Creamer.
Following news of Gigaba's US trip, businessman and leader of campaign Save South Africa Sipho Pityana said there would be “strong debate” among business and labour on whether to support such a roadshow.
Pityana explained that when President Jacob Zuma abruptly recalled Gordhan from his UK roadshow, it was a "kick in the teeth" for business and labour representatives who accompanied Gordhan on his trip.
He noted at the time that accompanying Gigaba would be like attending an “altar of fools”.
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