Malusi Gigaba is Des van Rooyen in a designer suit

The appointment of the new Minister of Finance, Malusi Gigaba, has been a disaster for the economy of South Africa.
The minister’s first one hundred hours, in what he called the “hot seat”, has been a monumental shambles – the rand tanked, ten-year bond yields spiked and the country was downgraded to “junk status” by Standard & Poors.
This should not come as a surprise considering the minister’s weekend press conference, which was called to “restore confidence and restore calm”, but then proceeded to do exactly the opposite.
He suggested that:

  • policy changes could be expected when he committed himself to implementing “radical economic transformation”; and
  • that institutional changes could be expected at National Treasury, which he seemed to suggest was dominated by “orthodox economists, big business and international investors”.

And it got worse when the minister could not explain what “radical economic transformation” meant and was forced to concede there was still “a whole lot of clarification that we have to do.”
The minister then compounded the problem at today’s press conference,  which was called to do damage control following the downgrade to “junk status”, when he suggested that he was “committed to inclusive growth”, but had not abandoned “radical economic transformation”.
The minister’s damage control exercise was an own goal because it will give oxygen to the narrative that there is policy uncertainty and it will not go down well with the ratings agencies, which are concerned about possible “policy shifts” following the midnight cabinet reshuffle.
The fact is that the minister is just not up to the job and there is now a strong impression that: Malusi Gigaba is just Des Van Rooyen in a designer suit.

Downgrade to “junk status” a vote of no confidence in Jacob Zuma

Make your voice heard – NoConfidence.co.za
This evening’s decision by Standard and Poors Global Ratings Services (“Standard & Poors”) to downgrade South Africa’s sovereign credit rating to “junk status” is a clear vote of no confidence in President Zuma, and a direct result of his decision to fire Pravin Gordhan and Mcebisi Jonas last week.
President Zuma should resign immediately to allow a new administration to stabilise our economy, and to stanch this growing crisis.
Standard & Poors’ decision comes just days after President Zuma reshuffled his cabinet –  sending shudders of uncertainty and volatility through our economy. International ratings agencies have long warned this government that our status is on a knife edge. Zuma has clearly learnt nothing from the market reaction to his firing of then Finance Minister Nhlanhla Nene in December 2015.
Instead of acting in the best interests of the country and its people, Zuma chose to act in his own best interests by firing Gordhan and Jonas. The negative effects of this downgrade – which is likely not to be the last – will be felt by all South Africans. This downgrade will result in higher government borrowing costs, less money for basic services, and less job creating investment.
Zuma is on a path of destruction, and must be stopped. If he does not surrender to the will of the people and resign, then Parliament must remove him by supporting our Motion of No Confidence which will come before Parliament in the coming weeks.