South Africa must work harder to grow economy after S&P downgrade: finance minister Gigaba

[April 04, 2017]  PRETORIA (Reuters) - South Africa's new Finance Minister Malusi Gigaba said on Tuesday the credit rating downgrade by S&P meant the government had to pay even greater focus on growing the economy, and that he would address the issues raised by the rating agencies.

South Africa's new finance minister, Malusi Gigaba looks on after the swearing in of cabinet ministers following a reshuffle that replaced Pravin Gordhan as finance minister with Gigaba along with various other ministers and their deputies in Pretoria, South Africa, March 31,2017. REUTERS/Siphiwe Sibeko/File Photo

Gigaba said South Africa's rand denominated debt was still rated as investment grade and that the government's fiscal policy remained unchanged despite the switch in finance ministers following the reshuffle last week.

S&P cut the country's credit rating to BB+ with a negative outlook from BBB- in an unscheduled review, saying the dismissal of respected Pravin Gordhan as finance minister raised the risk a damaging policy shift.

(Reporting by Olivia Kumwenda-Mtambo; Writing by Mfuneko Toyana; Editing by James Macharia)

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