The markets need transparency around Gordhan saga to keep rand stable

After days of economic and political volatility, over the probe into Finance Minister Pravin Gordhan, News24 reported that Gordhan has now told his Treasury staff that he is being attacked by the Guptas because of the work his department has been doing.

Brett Birkenstock, Overberg Asset Management director, joins Africa Melane on the Weekend Breakfast Show to talk about what this means for the country.

The Finance Minister has the backing of foreign investors and global investors, and of course the Ratings Agencies Standard & Poor, Moody's and Fitch. So there is a lot of respect and trust based on his actions

Brett Birkenstock, Overberg Asset Management director

At the moment we are seeing a deviation from belief and confidence in the country to be able to implement fiscal prudency and also have economic growth which are the cornerstones of us not being downgraded in December, he added.

He did not choose to delve into speculation about what or who is attacking the finance minister.

It's felt like deja vu this last week, taking us back to the 'Nenegate' incident last year in December"

Brett Birkenstock, Overberg Asset Management director

He says it does seem that some members of the South African government would like direct control over the State Owned Enterprises (SOEs).

A weaker rand followed this week's summons of Gordhan by the Hawks for questioning. He says it's not good news for South Africans.

We are a net importer of food, and we are in competition with foreign markets for produce

Brett Birkenstock, Overberg Asset Management director

So a weaker rand means other countries can pay more. And this affects our local food producers. Imports become more expensive, petrol and transport prices increase.

It puts local businesses under pressure, which causes further inflation.

Brett Birkenstock, Overberg Asset Management director

This could all lead to further riot action and service delivery protests., and says transparency on all these matters around Gordhan is what is required to make the markets happier and instil confidence.

Listen to the interview below:

Read More
Service delivery app to be rolled out throughout WC in the next year

Service delivery app to be rolled out throughout WC in the next year

The Municipal Citizen Engagement Application has already been piloted in five municipalities including Oudtshoorn.

WC Blood Transfusion Service appeals to public to donate blood

WC Blood Transfusion Service appeals to public to donate blood

The agency says the Western Cape’s group B blood supply is under severe pressure.

Kalushi-The Story of Solomon Mahlangu now in South African cinemas

Kalushi-The Story of Solomon Mahlangu now in South African cinemas

A must see story for every South African

Kidnapped Durban baby has been found alive and well

Kidnapped Durban baby has been found alive and well

Good news as one-month-old Siwaphiwe Mbambo was found in the early hours of Sunday morning following a two-day search.

Meter taxi strike leaves airline passengers frustrated

Meter taxi strike leaves airline passengers frustrated

Customers found themselves caught in the middle of a feud between the Uber and taxi meter industry.

Will aquifers be a better solution to Cape's water problems?

Will aquifers be a better solution to Cape's water problems?

According to a hydrologist, a lot need to be considered when planning to extract water from the aquifers.

Popular articles
Opinion: Social housing in Sea Point won't collapse your world! - John Maytham

Opinion: Social housing in Sea Point won't collapse your world! - John Maytham

Social housing in Sea Point will house the very people who you are happy to have look after your kids & serve you in restaurants.

Sale of Tafelberg gets green-light from Cape Town City

Sale of Tafelberg gets green-light from Cape Town City

Despite months of protests and lobbying, affordable housing and redevelopment finally lose the battle for Tafelberg site.

Opinion: Laying equal blame on parents in Spur spat is wrong says Eusebius

Opinion: Laying equal blame on parents in Spur spat is wrong says Eusebius

He believes it's a moral cop-out to say the only thing going on in the video is two adults behaving badly in front of the kids.

Is Uber dying? Stuff’s editor explains…

Is Uber dying? Stuff’s editor explains…

High ranking employees are resigning en masse as crisis upon crisis pummel lossmaking Uber.

Spur CEO: Man's pic will be up at restaurants and he is not welcome

Spur CEO: Man's pic will be up at restaurants and he is not welcome

Spur CEO says staff aren't equipped for this kind of customer confrontation and he will consider reviewing their training manual.

WATCH: Spur bans man after heated spat caught on camera

WATCH: Spur bans man after heated spat caught on camera

A man has been banned from Spur after threatening a woman during a heated argument which was captured on video and has gone viral.

Spur tightens its belt as 'two for the price of one' Monday burger special ends

Spur tightens its belt as 'two for the price of one' Monday burger special ends

The CEO of Spur says food inflation has played a big role in making this difficult decision.

Earn peanuts? How to best invest very small amounts...

Earn peanuts? How to best invest very small amounts...

Got a spare R200 or R300 a month? Here’s how to make that money work hard and grow…