South Africa had been given “breathing space” until June to implement “concrete” actions that demonstrated its ability to both manage its fiscal constraints and improve its growth prospects, Finance Minister Pravin Gordhan said on Monday, following his return from an investor roadshow to the UK and the US. Joined during a media briefing at the JSE in Sandton by some of business and labour representatives that had formed part of the South African delegation to the two countries, Gordhan again emphasised that it was possible for the country to avoid being downgraded to a sub-investment credit rating, or junk. However, both ratings agencies and investors were increasingly insistent that South Africa began showing proof of implementation to address the risks facing it.
