Cape Town – The South African government has welcomed Moody’s decision to affirm the country’s long-term foreign and local currency debt ratings at ‘Ba2’ with a stable outlook.
The ratings reflect strengths such as robust institutions, a solid financial sector, and a strong external position, while also acknowledging challenges like inequality, structural constraints on growth, and high debt costs, said Moody’s.
National Treasury highlighted progress in addressing economic challenges, noting improvements in electricity supply, stabilisation of the logistics system, and reductions in business costs.
Moody’s affirms SA’s long-term foreign and local currency debt ratings and maintains the stable outlook. Read more from here: https://t.co/XHgSdKR4Wo @GovernmentZA pic.twitter.com/KfLZaBVxdo
— National Treasury RSA (@Treasury_RSA) December 4, 2024
“Government welcomes Moody’s acknowledgment that the Government of National Unity (GNU) will pursue structural reforms and ease growth bottlenecks. Government is pursuing policies to achieve rapid, inclusive and sustainable economic growth.
“Economic reforms are beginning to bear fruit; electricity availability has improved; the logistics system is stabilising and the cost of doing business is declining in some areas of the economy.
“Government is also transforming the way it prepares and delivers infrastructure projects. It is mobilising private sector resources that will augment public-sector capability and provide new channels for financing,” National Treasury said.
The government’s medium-term growth strategy will be driven by maintaining macroeconomic stability, implementing reforms, enhancing state capacity, and investing in growth-oriented public infrastructure, as outlined in the 2024 Medium Term Budget Policy Statement.
Follow African Insider on Facebook, Twitter and Instagram
Picture: Pixabay
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
