Downgrade was looming before Cabinet reshuffle - Dawie Roodt

Following reports that Moody's is expected to downgrade South Africa despite Finance Minister Malusi Gigaba's visit, CapeTalk's Kieno Kammies speaks to Economist Dawie Roodt about other countries that are downgraded.

Roodt says it doesn't matter which other countries have been downgraded. He says the downgrade has been long coming and economists have been expecting it based on the country's fiscal and unemployment numbers.

He says he doesn't believe the cabinet reshuffle was the main reason the country was downgraded to junk status.

Read: Gigaba said he failed to assure Moody's about SA economic policy

This was just a confirmation we've been expecting.

Dawie Roodt, Chief economist and Director at The Efficient Group

Roodt says the rating agencies look at policies and political stability of a country before making a decision to down grade.

Gigaba has been recorded as saying he will continue with fiscal policy as it was. However, Roodt says if the minister continues with the fiscal policy the country could see another downgrade very soon.

To hear more of this conversation, listen below:


Recommended

by NEWSROOM AI
Read More
Gigaba said he failed to assure Moody's about SA economic policy- senior journo

Gigaba said he failed to assure Moody's about SA economic policy- senior journo

The Finance Minister admitted that he faced difficult questions from investors during his visit to the US, says Simon Marks.

Gigaba needs to be decisive -  Mantshantsha

Gigaba needs to be decisive - Mantshantsha

Sikonathi Mantshantsha, Deputy Editor at Financial Mail speaks to Africa Melane about the minister's investors road show.

'Gigaba will have limited effect; the elephant in the room is the President'

'Gigaba will have limited effect; the elephant in the room is the President'

The Money Show’s Bruce Whitfield interviews Standard Bank Chief Economist Goolam Ballim.

[Cartoon] Who's got the FinMin's ear?

[Cartoon] Who's got the FinMin's ear?

EWN's Dr Jack & Curtis take a look at Malusi Gigaba's recent public snub of economic advisor Chris Malikane.

Maps Maponyane rocks the #FridayStandIn gig

Maps Maponyane rocks the #FridayStandIn gig

Masego Maps Maponyane hosted a successful #FridayStandIn show looking at fashion, entrepreneurship and education reform issues.

Your next boss may not be a human

Your next boss may not be a human

Algorithmic management could help companies and employees perform better, or prove that machines are just not ready for it yet.

Popular articles
ANC welcomes apppointment of Dr Silas Ramaite as acting NDPP

ANC welcomes apppointment of Dr Silas Ramaite as acting NDPP

ANC deputy secretary-general Jessie Duarte says the party is most concerned with the stability of the NPA.

The UAE is pumping billions into the Horn of Africa

The UAE is pumping billions into the Horn of Africa

The Money Show's Bruce Whitfield interviews Africa correspondent Lee Kasumba

'Minnie understood he might become a target'

'Minnie understood he might become a target'

Marianne Thamm wrote the forward to 'The Lost Boys of Bird Island' and worked with Mark Minnie in editing the controversial book.

'The Guernsey Literary & Potato Peel Pie Society film will leave you hooked'

'The Guernsey Literary & Potato Peel Pie Society film will leave you hooked'

Film reviewer Gayle Edmunds chats about 'The Guernsey Literary & Potato Peel Pie Society' film, and what movie-goers can expect.

'Black Tax'... working hard, earning well, but struggling financially

'Black Tax'... working hard, earning well, but struggling financially

Young(ish) South Africans tell stories of the mixed emotions they feel when supporting family members, and tips from an advisor.

Castro bodyguard shares tales of dictator’s double life and breath-taking wealth

Castro bodyguard shares tales of dictator’s double life and breath-taking wealth

Juan Sanchez shares stories of Fidel Castro that’ll make you re-examine everything you thought you knew about the Cuban dictator.

How Tracey Chambers is helping unemployed moms become entrepreneurs

How Tracey Chambers is helping unemployed moms become entrepreneurs

The Clothing Bank gives women access to discounted merchandise and 500 hours of training in money management and business skills.