Pravin Gordhan
South African Finance Minister Pravin Gordhan speaks at a news conference during the annual IMF-World Bank meeting at the IMF headquarters building in Washington October 7, 2010. REUTERS

South Africa's government realises that it has to work in a more constrained fiscal environment for a few more years, Finance Minister Pravin Gordhan said on Monday.

Gordhan told a business meeting that he hoped recent developments in Europe aimed at resolving debt crises in some countries were an indication of a more stable environment ahead.

South Africa