South Africa’s Credit Rating Improves to Positive Outlook

The African National Congress (ANC) has welcomed the decision by Moody’s Investor Research Services to confirm South Africa’s credit rating at investment grade and to change SA’s outlook from negative to stable.

“This decision affirms the work of the ANC-led government, together with our social partners, to implement measures aimed at recovery of the South African economy as well as sustaining the ongoing positive mood,” said the ANC in a statement on Saturday.

However it did acknowledge that “whilst this decision offers a welcome reprieve, much more remains to be done to ensure that our economy remains on the correct trajectory.”

The ANC said it “reaffirms its commitment to support government in the quest to strike the necessary balance between fiscal consolidation and investment in pressing social needs including the development of economic and social infrastructure, and consolidating the social security net which the most vulnerable in our society rely on.”

The DA said the decision by Moody’s to hold South Africa’s sovereign credit rating at “Baa3”, with a “stable outlook”, is good news for the South African economy, but reminded South Africans that “the ratings action means our long-term local currency debt, which forms 88.2% of our R2.2 trillion net debt, remains at one notch above “junk status”, with a stable outlook.

“The populist expropriation of land without compensation as well as uncertainty around the Mining Charter, must never be used to keep a divided ANC together at the expense of ratings and business confidence. This will only serve to subdue investment.

“There are 9,2 million South Africans who do not have work and access to any social security. It is these South Africans who deserve more from the Government of President Cyril Ramaphosa.

“President Ramaphosa’s primary focus should not be on populist narratives that seek to placate dissension within the ANC while ignoring the poor. The welfare of ordinary South Africans supersedes the ANC’s narrow party political interests.”