South Africa’s Gordhan charms on roadshow but investors still wary

South African finance minister Pravin Gordhan won applause for an impromptu London roadshow this week but left many global investors skeptical he could defend his country’s investment grade rating – or even stay in office.

Appointed after a predecessor’s sudden sacking, Gordhan is trying to woo back UK and U.S.-based investors and repair the damage from “9-12”, the December day when President Jacob Zuma suddenly switched finance minister. It took the subsequent appointment of Gordhan, respected for a previous stint at the ministry, to calm markets.

But “9-12” was seen to have seriously dented South Africa’s institutional credibility, adding to investor worries about an economy growing at less than one percent, high inflation, a balance of payments hole, weak commodity prices, frequent labor unrest and power shortages. Read More…

South Africa’s Gordhan charms on roadshow but investors still wary

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