Ramaphosa makes a case to foreign investors

The ratings agency estimates South Africa's economy will expand by a measly 0.7 percent in 2020.

CAPE TOWN - Moody's' decision to cut the country's economic growth forecast for the year doesn't appear to have scared off financiers who've met with the president.

The ratings agency estimates South Africa's economy will expand by a measly 0.7 percent in 2020.

Nevertheless, heads of local and international financial institutions have thrown their weight behind the president's plans to intensify infrastructure investment.

READ: Moody's cuts South Africa's growth forecast

Dozens of influential heads of financial institutions and leaders of multilateral development finance groups gathered and Ramaphosa wasted no time in asking for help in alleviating South Africa's major economic headaches.

The office head of Investment and Infrastructure in the Presidency, Kgosientso Ramakgopa, said, "one of the biggest outcomes of this meeting was the commitment of all the players to help government in recreating the capacity that has been lost after a period of time."

This includes the technical and engineering skills of people who have left the country. The president now wants to bring them back.

READ: Negative outlook for the economy in 2020

Ramakgopa said it is in the interests of all the economic players in the country that there is a reliable project pipeline so companies can invest.

He said that is why these players are committed to the process. 

Meiwei Luo, representing the China Construction Bank said, "we still have confidence in the South African government. We need to try our best before we can draw a conclusion. We need to work hard, take action."

The president will convene a Sustainable Infrastructure Development Symposium in May.

Source
eNCA