Moody's said one of the main challenges of the new government would be to arrest and potentially reverse the long-term decline in South Africa's growth potential.
A street vendor walks past orange overalls and handcuffs outside the ANC’s headquarters in Johannesburg, 17 April 2019, which DA left outside after handing over a list of objections to the ANC party lists. Picture:Nigel Sibanda
South Africa’s new government faces significant challenges in raising growth, stabilising debt, and strengthening state-owned enterprises and institutions, Moody’s Investors Service has said. After his ruling ANC retained power at last week’s general elections, albeit with a reduced majority, President Cyril Ramaphosa is putting together a new cabinet that must pursue policies that kickstart the stuttering economy and help create new jobs in a country grappling with 27.6 percent unemployment.
“While South Africa has strengths, including a favourable government debt structure and a large pool of domestic investors, in the absence of effective policy change, the sovereign’s credit profile will most likely continue to erode, with fiscal strength weakening and growth remaining low,” said Lucie Villa, a Moody’s vice president and co-author of the report.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Agri SA congratulates IEC and South Africa on successful electionsAgri SA looked forward to the constituting of the sixth parliament and the policy development that would be driven by this institution.
Read more »
'True South African hero' who designed new SA flag diesFrederick Brownell, the man who designed the South African flag used since the country’s transition to democracy in 1994, has died at the age of 79. Arts and Culture Minister Nathi Mthethwa labelled him 'a true South African hero' whose name would be 'etched in history'.
Read more »
SA unemployment rate rises to 27.6% in first quarter of 2019 – Stats SAThe number of employed people decreased by 237,000 to 16.3 million in the first quarter.
Read more »
Manyonga‚ Simbine to lead the charge in ShanghaiSA sprinter faces strong US quartet
Read more »
Russia ‘not interfering or involved’ in SA pollingThe IEC was aware that electronic voting systems often had high levels of interference by various forces, but that had not happened in South Africa.
Read more »
Thousands of SA seafarers face axing from 'white list' that allows them to work abroad
Read more »
WATCH: Trevor Noah jokes about Malema and ‘white genocide’ on Daily Show, divides SAThe Daily Show host has been accused of being careless with his commentary but others say he’s reflecting facts.
Read more »
17 behind-the-scenes secrets of 'The Bachelor SA' finaleHere is what happened behind-the-scenes during the recording of the highly-emotional 'Bachelor SA' finale.
Read more »