S. Africa has potential to overcome challenges: Treasury

As a resilient nation, South Africa has the potential to overcome its immediate challenges, the National Treasury said on Monday.

"What is required is for government, labour and business to work together on concrete steps and actions that will be taken to lift economic growth," the Treasury said in a statement about the outcome of Finance Minister Pravin Gordhan's just-concluded visit to Britain and the United States, which aims at boosting investors' confidence.

Gordhan undertook a roadshow to London, Boston and New York last week, accompanied by leaders from business, labour federations and senior officials from the National Treasury and the South African Reserve Bank.

The purpose of the roadshow was to engage with international investors after the tabling of 2016 Budget and also provide updates on the latest economic developments in the country and plans for the medium term, the Treasury said.

It said meetings were held with over 250 investors, to address the fiscal risks, strain in balance sheets of state-owned companies, recent developments on sovereign credit ratings, slow economic growth, business and investment confidence, regulatory clarity, labour and monetary policy, and the political environment.

"The issues raised by investors on the roadshow underscore the need for South Africa to implement the growth-inducing economic reforms with urgency," it said.

The world economic outlook is uncertain and it is crucial that South Africa be seen to be united and focused on tackling its socio-economic challenges, said the Treasury.

"The next few months are critical as South Africa is expected to demonstrate concrete actions to map a path for higher economic growth as it seeks to preserve its investment grade rating and also demonstrate progress to address poverty, unemployment and inequality," it added.

South Africa has been placed by Moody's Investors Service on downgrade review.

Moody's will visit South Africa this week to decide whether to cut the nation's credit rating to one level above junk.

Moody's said last week its decision to place South Africa on review for possible downgrade was prompted by the continuing rise in risks to the country's medium-term economic prospects and to its fiscal strength, notwithstanding the tighter fiscal stance undertaken in the 2016/17 budget. Enditem