The South Africa’s downgrades by international ratings agencies Fitch and Moody’s over the weekend are a difficult pill to swallow for an economy that is trying to recover from the devastating effects of the Covid-19 pandemic.
We have been downgraded further into junk status to Ba2 (Moody’s) and BB- by Fitch, respectively two and three levels below investment grade while the agencies also stressed a negative outlook for the country.
This is clear and present sign to government that the interim budget speech and Pres. Cyril Ramaphosa’s Economic Recovery Plan have failed to impress where it matters and urgent corrections are needed to put the country back on the right path.
South African has been receiving downgrades even before the Coronavirus pandemic and various reasons have been clearly pointed out, but government has been slow to address these issues chief amongst them being unstable power supply.
UASA again asks the government to relook policies we have in have place especially for economic growth, job creation and sustainability. Are these policies enough to develop our economy further? Because as it stands they are not enough to boost investor confidence in the country.
For further enquiries or to set up a personal interview, contact Stan Mazhindu at 074 978 3415.