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Assessing and promoting civil and minority rights in South Africa.

[Source: Moneyweb by Amogelang Mbatha and Arabile Gumede.]

South African business leaders are preparing for more credit-rating reductions as mismanagement hobbles state companies and after bad decisions by President Jacob Zuma, according to the head of one of the country’s biggest corporate lobby groups.

“We are expecting further ratings-agency downgrades because all the things that they said we shouldn’t do, the president has gone on to do,” Bonang Mohale, chief executive officer of Business Leadership South Africa and a former chairman of Royal Dutch Shell’s South African unit, said in an interview at Bloomberg’s office in Johannesburg.

Fitch Ratings and S&P Global Ratings cut South Africa’s foreign-currency debt to junk in April citing concerns about policy direction, political infighting and poor governance at state companies after Zuma fired investor-favorite Pravin Gordhan as finance minister. Another downgrade to non-investment grade in the assessments for local-currency debt would exclude the nation from global indexes and lead to billions of dollars in capital outflows.

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South Africa at a Glance
57 700 000 (mid 2018 estimate)
4.9% y/y in September 2018 (CPI) & +6.2 y/y in September 2018 (PPI)
-0.7% q/q (2nd quarter of 2018)
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