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Roundup: S. African government positive about economic recovery

Xinhua, June 1, 2016 Adjust font size:

The South African government is working hard to ensure that the country is not downgraded to junks status, Minister in the Presidency Jeff Radebe said on Tuesday.

The government is giving top priority to the country's economy, Radebe told Xinhua.

He was responding to widespread predictions that the country's sovereign rating would be downgraded to junk status by international rating agency Standard & Poor (S&P).

S&P's rating update for SA is due on June 3. The agency is expected to downgrade SA's rating to sub-investment grade.

Radebe said President Jacob Zuma has assigned Finance Minister Pravin Gordhan to lead "Team South Africa" to New York, London, among other places, to explain the measures the government has put in place to avoid a downgrade.

Gordhan has introduced a series of austerity measures, including cutting unnecessary expenditure by the government.

Radebe expressed optimism that the country will not be downgraded to junk status, saying investors are still confident in South Africa.

He cited recent investments from BMW and Toyota in the country as proof.

The government, Radebe said, is optimistic that the poor economic growth in the country would not last long.

He said some of the problems which are negatively affecting the country are drought, the underperforming manufacturing sector, weak global performance and commodity price slump.

Also on Tuesday, Nicolaas Kruger, CEO of MM1, a company which specialises in long and short-term insurance, asset management, savings, investment, healthcare administration and employee benefits in 13 countries, told Xinhua that positive things are

happening in South Africa.

He said the measures introduced by Gordan are positive to lure investors and stimulate growth.

Kruger said, "The coordination between government, business and other social partners is encouraging. We need to continue doing that going forward. Gordhan is doing a good job, especially in bringing in the fiscal discipline and we are going to see more positive things if he continues on that path." Enditem