Treasury said Moody’s latest rating to keep South Africa one notch above investment grade affords the country an opportunity to demonstrate faster and concrete implementation of reforms.
Moody’s is the last of the three big rating agencies to keep the country in positive territory.
It comes days after Finance Minister Tito Mboweni delivered his Medium-Term Budget Policy Statement, which received mixed reaction all round.
Mboweni has acknowledged Moody’s rating with a heavy heart, saying he had hoped for a different outcome.
“Fellow South Africans, now is the time to roll up our sleeves and do what we have to do. It’s now or never. We need all hands on deck. Government, labour, business and civil society, we need each other now more than ever. The country is ours and it is only us who can turn it around.”
Moody’s says South Africa’s economic growth has been deteriorating and showing no signs of improvement.
Treasury has reacted with an assurance that it’s working towards lifting growth and returning public finances to a more sustainable path.
It said the government made progress on several measures, including the visa regime to support tourism, approving the integrated resource plan for desired energy and releasing the telecommunications policy directive.
Treasury said the government was fully aware that short and medium-term reforms were urgently required to improve economic performance over the next several years.
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