Newly appointed Minister of Finance Malusi Gigaba’s maiden press conference to “restore confidence and restore calm” is likely to have exactly the opposite effect and create even more policy uncertainty when it comes to the economy in South Africa.
The minister expressed his commitment to “radical economic transformation” with almost religious zeal, but then did not seem to be able to explain exactly what it means and conceded that there was still “a whole lot of clarification that we have to do”.
This is unlikely to go down well with what the minister called the “credible ratings agencies”, with one ratings agency already warning that a change in policy may signal a ratings review of South Africa.
The real concern is that the minister was appointed with the Guptas’ stamp of approval and the real test of the new minister will not be his words, but his deeds when it comes to decisions that may have an effect on the Gupta empire’s interests in South Africa.
These include, but are not limited to, the following: the appointment of the Chief Procurement Officer at National Treasury; the approval of the joint venture or partnership with VR Laser Asia; the review of coal contracts entered into between Eskom and Tegeta Exploration and Resources; and any action in respect of the control over the Habib Overseas Bank.