MEDIA STATEMENT

NATIONAL TREASURYS INTERNATIONAL ROADSHOW

Finance Minister Pravin Gordhan, senior officials from the National Treasury
and senior leaders of South African business held a series of scheduled
meetings with rating agencies and investors in London on 27 March as part of
official trips planned for the week. The trips are scheduled National Treasurys
annual domestic and international investor engagement roadshows broadly
timed to follow immediately after the tabling of the Budget in February and
the publication of the Medium Term Budget Policy Statement in October
respectively.

The roadshow was scheduled to take place in two phases. The first phase was
set to take place in London on 27 and 28 March. Minister Pravin Gordhan was
leading the delegation, which also comprised of Mr Jabu Mabuza (of Business
Leadership South Africa and Business Unity South Africa), Ms Nicky Newton-
King (of the JSE). Mr George Sebulela from the Black Business Council could not
make it due to logistical challenges.

As in the past international roadshow held late last year, leaders of the three
labour union federations COSATU, NACTU and FEDUSA - were also invited to
attend. Due to logistical reasons, they did not make the first day of the
meetings, but were told not to travel because the trip was subsequently
cancelled. The Reserve Bank delegation which also traditionally joins the
roadshows could not be part of it because of the planned Monetary Policy
Committee meeting.
The second leg of the roadshow was intended to be in the United States, to be
led by the Deputy Minister Mcebisi Jonas. However, this trip was subsequently
cancelled before he travelled last night.

In London, Minister Gordhan and his delegation had five face-to-face meetings
with sixty representatives from the following fund managers: BlackRock,
T.Rowe, Aberdeen, Eaton Vance, Vanguard, Investec, Metlife and Apollona,
and 28 investors in a combined lunch. They also met two rating agencies (Fitch
and Moodys), as well as a teleconference with Standard & Poor.

The meetings are part of the normal course of business of the Treasurys effort
to keep both rating agencies and investors informed about fiscal and monetary
policy developments, more specifically and about topical contemporary policy
issues in SA.

The questions from both investors and rating agencies revolved around:

1. Economic growth: Investors enquiring about the achievability or

otherwise of growth forecasts and Government, business and other
partners efforts towards achieving faster and more inclusive growth.

2. Fiscal Policy: While broadly commending the budget, investors wanted

to know whether there was still scope to adjust both revenue and
expenditure sides of the budget in the event that the fiscal targets are
likely to be missed materially.

3. Politics: Investors expressed concerns about the political environment

and the risk that it could divert attention from setting policies aimed at
accelerating growth and creating more work opportunities. They were
also curious about the processes leading to the policy conference of the
governing party and the electoral conference in December.

Enquiries: Communications Unit

Email: media@treasury.gov.za
Tel: (012) 315 5944
This information is crucial for investors to commit the funds under their
management by buying South African government bonds (by lending to the
South African government) and form their opinions about SAs credit
worthiness and thus to pronounce on the countrys rating. The ratings in turn
determine the cost at which SA will borrow the R730 billion it will need to
meet its borrowing requirement for the next three years.

Government on a weekly basis needs to borrow more than R13 billion in the
domestic market. Of governments total borrowing requirement, USD6 billion
needs to be raised in the international market over the next 3 years to partly
meet governments foreign commitments. This is money that will contribute
towards the building of public infrastructure roads, schools, health facilities,
etc - to deliver better public services to the 55 million South Africans.

One of the clear benefits of the roadshows is that, SA is one of very few
countries that do not have to meet investors before issuing an international
bond. In other words, the South African government is able to raise amounts
as high as USD3 billion within a matter of 3-5 hours. This has been the case for
the last 5 year now.

The meetings commenced at 10am and ended at 18h00 before the team
headed for the airport to catch their flight back home.

Issued on behalf of National Treasury

Date: 28 March 2017

Enquiries: Communications Unit

Email: media@treasury.gov.za
Tel: (012) 315 5944