South Africa’s Finance Minister Nhlanhla Nene is on an investors’ roadshow in London, meeting with credit agencies ahead of an upcoming review by Moody’s later in March.
The Ministry says the country hopes to tap into international bond markets to raise $3 billion shortly on the back of positive political movement back home.
Nene told reporters in London the country is telling a credible economic story and buoyed by the recent political developments will be looking to international bond markets to raise three billion US dollars.
On Monday Nene met with senior analysts from Moody’s and Fitch ratings to take them through plans to cut spending and increase revenues and look to increase the capacity of SA Revenue Services (Sars) to improve tax collection.
It comes as Moody’s is due to publish later in March the results of a review for possible downgrade, which could potentially take South Africa’s credit rating status to junk.
Nene admitted such a move would have a negative effect. Nene said his message to investors was that South Africa was determined to reform state owned enterprises, bring down the countries debt to sustainable levels and stabilize the country’s balance sheet.
He also said credit rating agencies and investors were keen to hear more about proposed land reforms and suggested government will have concrete proposals for land reform on the table by August.
He added that the issue has the potential to be abused for political reasons.
This after the Democratic Alliance (DA)) has warned plans to seize land without compensation would deter international investment and raise concerns about agricultural production.
The Treasury team excluding Nene will travel onto New York on Wednesday to meet investors .