Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

South Africa's Zuma recalls Gordhan from international roadshow, rand falls

Published 27/03/2017, 10:49
© Reuters. Finance Minister Pravin Gordhan delivers his 2017 Budget Speech to Parliament in Cape Town

JOHANNESBURG (Reuters) - South African President Jacob Zuma ordered Finance Minister Pravin Gordhan to return from an investor roadshow to Britain and the United States on Monday because he "did not give permission for the trip", a government source said.

Appointed in late 2015 after a predecessor's sudden sacking, Gordhan was in London for the first leg of a week-long non-deal investor roadshow in Britain and the United States.

Weak economic growth and tensions within the ruling party African National Congress (ANC) have put South Africa's investment grade credit rating at risk.

The rand fell as much as 1.7 percent following the report, while bonds weakened sharply. Banking shares on the Johannesburg bourse fell more than 2 percent.

"They were told last night or this morning to come back... the presidency did not give permission for the trip," the government source said.

The president's office could not be reached for comment.

Africa's most industrialised economy escaped being downgraded to junk status last year. S&P Global Ratings and Fitch Ratings both rank the sovereign one level above junk, while Moody's puts it two notches higher.

Moody's, which put South Africa on negative watch in its latest review, is due to revisit that on April 7, followed by S&P at the beginning of June.

© Reuters. Finance Minister Pravin Gordhan delivers his 2017 Budget Speech to Parliament in Cape Town

Gordhan's team on the trip to London, Boston and New York included deputy finance minister Mcebisi Jonas and Treasury director general Lungisa Fuzile, as well as business executives and union leaders.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.