Moody’s credit rating decision ‘good news’ for SA economy‚ says DA

The decision by Moody’s to hold South Africa’s sovereign credit rating at “Baa3”‚ with a “stable outlook”‚ is good news for South Africa’s economy‚ the Democratic Alliance says.

DA shadow deputy minister of finance Alf Lees said the decision highlighted the fact that “political developments” over the past two and a half months had had a positive impact on the outlook of ratings agencies and thus of potential investors.

However‚ for significant investment to take place‚ it would require a sustained programme of action by President Cyril Ramaphosa and Finance Minister Nhlanhla Nene.

“The populist expropriation of land without compensation as well as uncertainty around the Mining Charter‚ must never be used to keep a divided ANC together at the expense of ratings and business confidence. This will only serve to subdue investment‚” Lees cautioned.

He said there were 9‚2 million South Africans who did not have work and access to any social security. It was these South Africans who deserved more from Ramaphosa’s government.

“President Ramaphosa’s primary focus should not be on populist narratives that seek to placate dissension within the ANC while ignoring the poor. The welfare of ordinary South Africans supersedes the ANC’s narrow party political interests‚” Lees asserted.