Gigaba, Kganyago set for Washington

January 28, 2016.SA Reserve Bank Governor Lesetja Kganyago announces of the interest rates hike in Pretoria.Picture: FREDDY MAVUNDA © Business Day

JOHANNESBURG – Finance Minister Malusi Gigaba and central bank governor Lesetja Kganyago are headed to Washington where they are set to meet international investors and ratings agencies.

The main purpose of their visit is to woo foreign investors in a bid to boost growth to the country’s troubled economy.

In a statement on Thursday, the Treasury reported that the visit was not a social call but a strategic move to convince ratings firms and investors that the economy was on the mend.

According to the Treasury, Gigaba and Kganyago will use meetings during the World Bank and International Monitory Fund to paint a positive light towards South Africa’s embattled economy.

“It is important that we continue to engage these stakeholders to discuss interventions on how they can support South Africa’s development process, and to demonstrate our commitment towards addressing their concerns,” the Treasury said in the statement.

The visit comes after the Moody ‘s, Fitch and S&P Global Ratings downgraded the country’s sovereign economy.

Fitch and S&P also questioned the stability of the economy, following the controversial dismissal of former Finance Minister Pravin Gordhan by President Jacob Zuma in March.

The World Bank has also warned that South Africa needed to urgently solve its political issues before its economy hits a hard low.

The IMF also shared the same sentiments saying political uncertainty in the country has dented consumer and business confidence.

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