South Africa is facing a possible downgrade in the next six months following devaluation of the local currency and some policy decisions that have undermined investor confidence.
The rand took a dip when the country’s President Jacob Zuma made a surprise decision to fire former Finance Minister, Nhlanhla Nene, who was hailed as financially prudent, by markets.
The South African delegation attending the World Economic Forum underway in Davos says selling South Africa was difficult due to economic turbulence and uncertainty over policy direction.
“The reason why I came to attend the World Economic Forum is obviously as part of the South African delegation and also to be seen as part of the global player,” Nedbank Group’s Chairman, Vassi Naidoo told CNBC Africa.
Naidoo added that there was a need to get the cutting edge thinking taking place globally.
“We are also here to network and help bring the relevant thinking from the global world on areas such as business leadership, social entrepreneurs for Nedbank and for South Africa,” he added.
“The reality is we are in a very difficult time from [the] drop in commodity prices, oil prices which will make the message of Brand South Africa difficult.”
He however warned against pessimism even though there has been a movement of share prices of all banks
“We do not have to dwell much on the negatives but should look at these headwinds from a positive side. We need to put together as leadership so that we make sure South Africa is not downgraded.”