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Gigaba dismisses advisor’s nationalisation call

Finance minister to meet Moody’s to give assurances on SA’s policies.

PRETORIA – South Africa’s finance minister dismissed calls from one of his own advisors for the nationalisation of banks and mines on Wednesday, and acknowledged that investors had been unsettled by turmoil surrounding his ministry.

Malusi Gigaba, appointed in an abrupt reshuffle late last month that shook markets and prompted two ratings downgrades, told journalists he needed to reassure investors as he prepared to fly out to an IMF meeting in the United States.

President Jacob Zuma’s decision to sack Gigaba’s respected predecessor Pravin Gordhan hammered the rand and triggered protests by pro-democracy activists and opposition parties.

Uncertainty over the government’s fical policy rose again over the weekend when one of Gigaba’s advisers, Chris Malikane, wrote an opinion piece in South Africa’s Sunday Times backing the nationalisation of mines, banks and insurance firms.

Gigaba said the article by the economics professor at Johannesburg’s University of the Witwatersrand did not represent government policy.

“The technical advice he provides will never detract from the policies of the (ruling) African National Congress which don’t entail the wholesale nationalisation of the mines, the insurance industries and the land,” Gigaba told journalists.

“The changes in the national executive announced on the 30th of March has left some of them (investors) concerned and we need to give that reassurance in terms of government policy. It was only changes in the national executive and not changes in government policy,” he added.

Fitch and S&P Global Ratings both downgraded South Africa to junk after Gordhan’s sacking. Gigaba reiterated on Wednesday that he would meet Moody’s to give the ratings agency assurances about government policy in a bid to avoid a third downgrade.

Some political figures in the opposition have called for nationalisation of mines, saying private companies have failed to spread wealth and control of the economy beyond a small black elite and the white minority that ran the country under apartheid.

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With friends like Chris Malikane, you don’t need enemies.
His qualifications are the exact opposite of his beliefs and perceptions. He must be a very disturbed man. A communist that teaches economics? The poor students at Wits must be very confused. How does he mark their exams?

A university that employs a man that is such a disgrace to his profession must be extremely hard-up to find a “reformation candidate”.


I’m not a fan of communism; but there is merits in the romanticism ideals. Before we had Kings that controlled economies. These are basic ideas that challenges your comments.

1. If you are poor and struggling then communism is appealing because lots is provided for you. This is why in the country like ours this form of economy is popular with the unemployed and trade unions. This to me is a romantic idealism that will work if men are honest and hard working; and the wealth is shared.

2. Communism is part of economics ; just as socialism and free market economy. In this world there is nothing wrong with a different point of view. This is not a disgrace at all. We need people like this to balance things to counter unchecked greed and noncompetitive behavior.

3. At Universities; they have moderators that checks exam scripts so that students are not penalised unfairly.

I believe that compassion and the support of welfare for the poor, elderly and youth is important. I spend a great deal of time and money for the benefit of less privileged people. The reason why I am so outspoken and negative about socialism is that the greatest social disasters in history took place in the name of socialism. I don’t have to mention Mussolini, Hitler, Poll Pot, Lenin, Stalin and Idi Amin for we all know what terrible hardships these “romantic ideals” brought to society.

“Fascism is the stage reached after communism has proved an illusion.”
― Friedrich A. Hayek

There is only one way for a capitalist becomes wealthy – he must satisfy the consumer with both product and price. Capitalism is built on service to the consumer.

What is socialism built on? On the blood of millions.

While socialism is part of economics, it is most disingenuous for an scholar in economics to propose it as a solution after all the lessons history has thought us. He is negligent about our future and the social welfare of our people.

Socialism is the paving of good intention on the road to hell.

“nothing wrong with a different point of view.” Yes everyone have their viewpoints and should be encouraged to raise them. However, there are things like correct and wrong decisions. That will determine a Zimbabwe or a Singapore outcome. This is why we need smart people to advise on policy. Wits credibility went down a few notches in my book.

It’s difficult to think of any single thing that has led to more poverty and suffering in the world than the pursuit of the ideals behind communism and socialism. And yet people continue to try it, despite all evidence to the contrary.

Even at rock bottom like now in Venezuela you would think even the stupidest of the stupid would have the sense to see capital flows have to be freed up. What do they do? Seize a General Motors factory. Destroying even the bit they have left. Amazing how stupid really has no limits

The socialist policies you describe as “appealing to the poor” has led to the deaths of 130 million people over a period of 70 years.

How can the prospect of famine and death camps be appealing to the poor? While the ideals of socialism sounds good to ignorant spectators, the means of realizing the ideals are horrendous.

One of the basic conditions for the victory of socialism is the arming of the workers and the disarming of the bourgeoisie (the middle class).
— Vladimir Ilyich Lenin

“The problem with socialism is that eventually you run out of other people’s money [to spend].” Margaret Thatcher

Malusi Gagupta American money is no longer interested in South Africa.

As far as Moody’s is concerned, they are going to show you a toffee. A well deserved one.

Poor Malusi Gigaba, the moment he started to enjoy the lime-light, his buddy deliberately shot him in the foot! This is so typical of the ANC, one huge disgrace of a mistake.

Hey Gigglebaby – explain it nicely to the western imperialist capitalists you will meet.

Don’t believe it !!! The Zuma acolytes will work in tandem, giving contradictory statements to first aggravate, then placate the public. But the discourse is out in the open now and the statements shrilling for radical economic stupidity will intensify. Until one day Zuma feels he has enough support to do something silly again and take the country one step closer to oblivion.

gigaba you bad boy. Cant believe you are visiting white monopoly capital? The very same people Zuma accused of plotting to overthrow him.

Spot on Mytake. Bell Pottinger’s “white monopoly capital” is just a smokescreen to divert attention from state-capture!???

It is very concerning that very senior people in government truelyrics believe natiolizing mines, etc. is the unswer ignoring pathetic performance of most state run departments/companies (Eskom, now SARS as well, SAA, education, post office, etc.). How on earth do they expect to run a complex mine? Definetely not by appointing incompotent and corrupt unskilled friends/allies in key positions.

Why even appoint him in the first place? Just who are you trying to con?

Too true!? If as Gigupta says, “economic policy is going to remain the same”, why was PG dismissed!??
Seems Bell Pottinger spin doctors are still alive and well; they may have split with Oakbay (if you believe them?), but I am certain they are consultants to the Zuptas, ANCYL, ANCWL, etc….even statements emanating from these two organisations, seems to be from the same BP script???

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