Deputy President Cyril Ramaphosa is confident that South Africa’s economy will come out of its current slump.
The deputy president made the comments during his state visit to Japan on Wednesday where he and a delegation of ministers and business people are promoting South Africa as an investment destination.
South Africa’s economy contracted in the second quarter of 2015 while the rand has taken a beating against the major currencies over the last two weeks spurred on by fears over slowing growth in China, the world’s second biggest economy and South Africa’s largest trading partner.
Speaking at the Japanese National Press Club, Ramaphosa said that he was confident that his government would be able to get the economy going again.
“Economic activity is cyclical, it goes up and down, but right now we are confident we will keep steady, we will manage the slump down as we move on to higher levels of growth,” Ramaphosa was quoted as saying by Fin24.
“China has emerged as our largest trading partner, we sell lots of commodities to China and as they slow down, their demand for commodities also become lesser and lesser,” the deputy president said in the report. “So it does have an impact on us.”
“We have great confidence in the Chinese government’s ability to manage that economy, to manage it back to growth and back to life,” he said.
“Like many other economies in the world, we are beginning to feel that impact,” he said. “Obviously our economic sector ministers have to sit down and discuss precisely how we should respond to this.
“We will be able to find solutions and come up with some strategies.”