LONDON — South African Finance Minister Nhlanhla Nene is in London on an investors roadshow and meeting with credit agencies ahead of an upcoming rating review by international rating agency Moody’s Investor Service later this month.
The Finance Ministry says South Africa hopes to tap into international bond markets to raise some 3.0 billion US dollars shortly on the back of positive political developments in the country.
Nene told the media here this week that South Africa is telling a credible economic story and is buoyed by the recent political developments and will be looking to international bond markets to raise three billion USD.
On Monday, Nene met with senior analysts from Moody’s and Fitch Ratings Inc to take them through Pretoria’s plans to cut spending and increase revenues and to increase the capacity of the South African Revenue Services (SARS) to improve tax collection.
The briefings come as Moody’s is due to publish later in March the results of a review for possible downgrade, which could potentially take South Africa’s credit rating status to junk.
Nene admitted such a move would have a negative effect and added that his message to investors was that South Africa was determined to reform State-owned enterprises (SOEs), bring down the country’s debt to sustainable levels and stabilize the country’s balance sheet.
He also said credit rating agencies and investors were keen to hear more about proposed land reforms and suggested that the government will have concrete proposals for land reform on the table by August.
He added that the issue has the potential to be abused for political reasons.
His comments came after the Democratic Alliance (DA), South Africa’s main opposition party, warned that plans to seize land privately owned without payment of compensation would deter international investment and raise concerns about agricultural production.
The Treasury team who are here, excluding Nene, will travel to New York on Wednesday to meet investors in the United States financial hub on a similar mission.
Source: NAM NEWS NETWORK