Finance Minister Gordhan on UK

Finance Minister Gordhan on UK Roadshow to boost investor confidence

The Federation of Unions of South Africa (FEDUSA) will participate in the efforts of Minister Pravin Gordhan to strengthen economic growth through increased investment and will be attending the Roadshow to the United Kingdom (UK) and United States of America (USA) with the Minister of Finance.

Finance Minister Gordhan on UK

Finance Minister Pravin Gordhan and representatives from South Africa’s private sector are in the UK this week on an investor roadshow aimed at rebuilding foreign confidence and to show credit rating agencies and investors that the country is not only open to doing business – but that it is serious about preserving its investment grade status.

Gordhan’s Budget, tabled last month, focused on fiscal consolidation, stabilizing national debt and cut spending plans. Together with the SA High Commission and Brand SA’s London office, a series of meetings have been scheduled with key investors and institutions to explain the budget to them and to give an indication of the way forward. The roadshow will also be heading to the USA.

The Investment Roadshows comes at a critical time when our country is facing low economic growth and the potential of sovereign rating downgrades. It is important for the social partners to place the economy on a sustainability path for decent job creation and inclusive economic growth. It is further imperative for government to introduce effective new measures to cut wasteful and fruitless expenditure and to keep spending within the announced ceiling, said Dennis George, FEDUSA General Secretary.

Increased investment has the potential to provide a much needed and urgent injection to stimulate inclusive economic growth. The risk to a downgrade junk status could immensely discourage future investment and could deteriorate unemployment. South Africa requires collaborative action to improve the future prospective including economic growth, job creation and poverty eradication.

FEDUSA is of the opinion that while financial and structural reforms could provide for a better, more sustainable balance between stability and growth, this measure and effort by the Finance Minister to attempt to secure and win the savings and capital investment in our country could channel and foster sustainable growth and development.

Investors can play a major role in fostering long-term growth and have the potential to counter act and to play a key role in crisis recovery strategies. Investment can also play a significant role and render a positive impact when it comes to creating a better environment for businesses to innovate and support job creation. FEDUSA further believes that it is important for the social partners to work together to effectively contribute to creating a conducive environment for inclusive economic growth.