PRETORIA – Treasury says there’s an urgent need to reignite confidence among foreign investors.
It believes it’s crucial for the economy to reclaim a healthy investment grade rating, by fast-tracking programmes of structural economic reform.
It comes in the wake of rating agency, Moody’s downgrading the country’s credit rating to Baa3 with a negative outlook.
That’s a notch above junk status.
The downgrade was driven by the slower progress of structural reforms, continued erosion of fiscal strength and a weak institutional framework.
eNCA spoke with economist, Lesiba Mothatha for more insight: