Subscribe to the bi-annual report
  • This field is for validation purposes and should be left unchanged.
Assessing and promoting civil and minority rights in South Africa.

[Source: Business Day, Editorial.]

So the inevitable has happened: SA’s debt has been “junked”. In some ways it’s less surprising that SA’s debt has been downgraded to junk status than the speed with which it happened. Perhaps also surprising is the fact that S&P Global Ratings maintained the negative outlook. That constitutes something of a kick in the guts to a downed man.

The opening comment of S&P’s statement makes it crystal-clear why the decision was taken: “In our opinion, the executive changes initiated by President Jacob Zuma have put at risk fiscal and growth outcomes.”

The major blame for this decision has been squarely laid at the table of the president, but it was not just the decision to replace Pravin Gordhan and a host of other cabinet members. S&P was also plainly concerned not just by the change in personnel but by the risk that these changes could yield “policy shifts” that would undermine fiscal and economic growth.

Continue reading here.

South Africa at a Glance
58 780 000 (mid 2018 estimate)
4.5% y/y in June 2019 (CPI) & +5.8 y/y in June 2019 (PPI)
-3.2% q/q (1st quarter of 2019)
More information: Click here!