Government has welcomed Moody’s resolution to affirm the sovereign’s long-term overseas and native forex debt rankings at ‘Ba2’ and keep the steady outlook.

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According to Moody’s, the rankings affirmation displays South Africa’s credit score strengths from efficient, core establishments such because the judiciary and the central financial institution, a sturdy, deep monetary sector and a strong exterior place. 

Chronic challenges

However, the rankings affirmation additionally acknowledges continual challenges posed by the nation’s inequalities which hamper reform progress and gasoline social danger, in addition to persistent structural constraints on financial progress, and a comparatively excessive and dear debt.

“Government welcomes Moody’s acknowledgment that the Government of National Unity (GNU) will pursue structural reforms and ease progress bottlenecks. Government is pursuing insurance policies to attain speedy, inclusive and sustainable financial progress.

“Economic reforms are starting to bear fruit; electrical energy availability has improved; the logistics system is stabilising and the price of doing enterprise is declining in some areas of the economic system. 

“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 mentioned.

Growth technique

As acknowledged within the 2024 Medium Term Budget Policy Statement (MTBPS), authorities’s progress technique over the medium time period can be anchored by the next pillars: Maintaining macroeconomic stability; Implementing structural reforms; Building state functionality; and Supporting growth-enhancing public infrastructure funding.

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