South African Minister of Finance Pravin Gordhan, in a speech Wednesday presenting President Jacob Zuma’s 2010 budget, outlined guidelines for reforming the country’s financial regulation system, which will including expanding oversight of “hedge funds, private equity and credit ratings agencies”.
“Although our institutions have proven to be robust, we must not be complacent,” he said, according to the prepared text for his speech.
The Finance Ministry is in the midst of reviewing its adherence to global regulatory standards in banking, insurance and securities markets, he added. He also said that a formal council of regulators may be instituted to strengthen South Africa’s framework for accountability, coordination and performance of financial regulators.
South Africa is the largest private equity market in Africa, and is home to buyout firms Brait and Ethos, as well as alternatives firm Pamodzi, among others.