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.

READ: Basa warns of coming junk status effects

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.

Two other rating agencies downgraded the country to junk status in the past few months.

eNCA spoke with economist, Lesiba Mothatha for more insight:

eNCA