South Africa
South Africa’s new Finance Minister Malusi Gigaba said on Tuesday the credit rating downgrade by S&P meant the government had to pay even greater focus on growing the economy, and that he would address the issues raised by the rating agencies.
Gigaba said South Africa’s rand denominated debt was still rated as investment grade and that the government’s fiscal policy remained unchanged despite the switch in finance ministers following the reshuffle last week.
“I’m not saying it’s easy to recover from degradation, but I think we can manage the political risks and practices that have been highlighted by S & P and have also been pointed at by Moody’s,” Gigaba said during a press briefing in Pretoria.
S&P cut the country’s credit rating to BB+ with a negative outlook from BBB- in an unscheduled review, saying the dismissal of respected Pravin Gordhan as finance minister raised the risk a damaging policy shift.
Meanwhile, Moody’s agency, which currently ranks South Africa, two notches above junk status, announced on Monday that it will place the country under surveillance for a potential downgrade.
Go to video
Botswana rejects controversial UK proposal on asylum-seekers
01:44
BRICS Film Festival begins in Moscow
02:47
Unraveling the political threads: Inside South Africa's Complex Election Landscape
Go to video
How South Africa's former leader Zuma turned on his allies and became a surprise election foe
01:08
SA poll body seeks clarification from Constitutional court on Zuma's eligibility
02:08
South Africa: Zuma's prosecution bid against Ramaphosa postponed