SA determined to avoid downgrade

Thursday, March 17, 2016

Pretoria – Cabinet says it is committed to ensuring that the country works together to make certain that South Africa’s credit rating is not downgraded.

Moody’s Investors Service (Moody’s) is currently in South Africa for its annual review from 16 - 18 March. Earlier this month, the ratings agency placed South Africa’s long and short term ratings of “Baa2” and “P-2”, respectively, on review for a possible downgrade.

Finance Minister Pravin Gordhan has undertaken roadshows to the United States and United Kingdom with various stakeholders, including business leaders, to engage with international investors after the tabling of the Budget. He also provided stakeholders with updates on the latest economic developments in the country, as well as plans for the medium term.

The South African delegation met with investors that collectively manage several trillions of dollar assets. The delegation held meetings with over 250 investors. In a media briefing after the roadshows, Minister Gordhan said investors are still confident in South Africa as an investment destination.

In a statement issued after South Africa’s Cabinet meeting on Thursday, government said the visit by Moody’s is an opportunity for South Africa to share the initiatives implemented to deal with the prevailing challenges.

“These include collaborative actions to accelerate inclusive growth, measures to fast track fiscal consolidation, speed up implementation of our R870 billion Infrastructure Investment Programme and progress made in resolving the energy constraints, including through renewable energy,” said Cabinet.

It called on all sectors to communicate all the positive programmes and interventions undertaken to safeguard the economy.

“It is important for all sectors to ensure that the country’s economy is resilient… Cabinet has also instructed the Inter-Ministerial Committee on Investment to fast track all key economy-related decisions.”

Cabinet reiterates that the resilience of the South African economy is built on sound economic fundamentals and practical policies. – SAnews.gov.za