Global economy continues to be skewed to the downside:Gigaba.

Malusi Gigaba also met with all three ratings agencies ahead 

of his medium-term budget speech later this month 

and seemed less certain about staving off 

possible future downgrades.(SABC)

Risks to the global economy continue to be skewed to the downside compounding concerns around South Africa's economic prospects in the short-term.

That's the view of Finance Minister Malusi Gigabawho was speaking at the conclusion of the International Monetary Fund and World Bank biannual meetings in Washington.

This as the World Bank called for a revolution in education in Africa as the continent continues to lag in skills development that is now seen as a critical and urgent part of the digital or fourth industrial revolution.

They gather twice a year to discuss best practices in global monetary and financial policy.

And while the sun is out in terms of economic growth globally, countries are urged to err on the side of caution as Gigaba explains:

"There's a feeling although the risks remain. It may be balanced, but they remain skewed to the downside if you consider the geopolitical and economic uncertainties, inward looking policies and protectionism mainly in developed countries and anticipated abrupt slowdown in the Chinese economy which would have global spill overs. So look at all of those, we need not become complacent as policy makers."

He's also met with all three ratings agencies ahead of his medium-term budget speech later this month and seemed less certain about staving off possible future downgrades.

"I don't see us improving immediately in the short-term but in the medium term I see us getting out of the current investment grade and going up largely because of persisting risks that they still foresee. The medium-term budget statement will go a long way towards alleviating the concerns they have if we can maintain the fiscal framework, maintain the expenditure framework, I've been emphasizing this point - we need to deal with policy risks such as in the telecommunications, in the mining sector as well as in the nuclear sector."

Gigaba also reaffirmed Treasury's position that a nuclear build programme as part of the energy mix will have to be shelved for now.

“The South African economy at present moment is not in a position where it can be able to carry the burden of nuclear technology, therefore we cannot proceed with that programme at the present moment until the economy has grown sufficiently and there is vast demand.”

With sub Saharan African growth at a tepid 2.4%, calls for a renewed push in skills development and better education outcomes in Africa.

Head of Africa Division of the World Bank group Mahktar Diop says: "We need to make a revolution, a revolution which is a revolution of mind, a revolution that allows us to build a new social contract in terms of knowledge sharing in terms of education, empowering people to transform our economies."

"If we don't do that today we'll not be able to prepare our children and our countries for the next generation to ensure they're ready to face robotics, to be ready to be integrated in the world economy," says Diop.

Countries urged to build greater resilience while African economies must diversity faster to remain competitive with education key.

Culled from SABC.

By Sherwin Bryce-Peace.