Fitch: SA's political climate contributing to poor economic growth

Credit rating agency Fitch has raised red flags over South Africa's recently announced Inclusive Growth Action Plan.

Finance Minister Malusi Gigaba unveiled the 14-point plan which is aimed at wrenching the country's economy out of a recession.

However, the rating agency says the points outlined in the plan are unlikely to significantly boost economic growth.

Read: Fitch concerned over SA's economic growth, but keep rating unchanged

Most of the measures announced by Gigaba are nothing new, explains Fitch executive Ed Parker.

Many of the measures we've already heard before. South Africa has not had any shortage of plans in the past.

Ed Parker, Fitch's Head of Europe, the Middle East and Africa Sovereign Ratings

We're skeptical that it is going make a significant impact on boosting growth, improving governance or alleviating fiscal pressures.

Ed Parker, Fitch's Head of Europe, the Middle East and Africa Sovereign Ratings

Also read: Gigaba's 14 point plan is encouraging but we've been here before - economist

Parker says the plan lacks major growth-enhancing measures and implementation strategies for governance at state-owned entities.

We see policy uncertainty and government pressures likely to persist until at least after the ANC elective conference in December.

Ed Parker, Fitch's Head of Europe, the Middle East and Africa Sovereign Ratings

He says Fitch downgraded South Africa in April because of evidence of declining standard of governance.

Take a listen:


This article first appeared on 702 : Fitch: SA's political climate contributing to poor economic growth


Recommended

by NEWSROOM AI
Read More
Hiding inside the 'dark web' - the horrors of child pornography

Hiding inside the 'dark web' - the horrors of child pornography

Expert says says child pornography has the effect of re-abusing the victim because it always exists online.

Thousands expected to march in support of Zuma

Thousands expected to march in support of Zuma

Supporters of the former president are expected to march to the Durban High Court on Friday.

NPA to pursue Zuma prosecution

NPA to pursue Zuma prosecution

NPA boss Shaun Abrahams announced on Friday that the state will reinstate fraud and corruption charges against Jacob Zuma.

[WATCH Bongani Bingwa] Politicians personify low standards and are nonsensical

[WATCH Bongani Bingwa] Politicians personify low standards and are nonsensical

Breakfast show host Bongani Bingwa interrogates the issue of corruption by state officials and questions their competence.

Gigaba press conference called off

Gigaba press conference called off

Finance Minister Malusi Gigaba was going to answer questions after a Moody's downgrade on Friday.

Fitch concerned over SA's economic growth, but keep rating unchanged

Fitch concerned over SA's economic growth, but keep rating unchanged

The agency is worried that the recent cabinet reshuffle is likely to undermine government and weaken fiscal consolidation.

Popular articles
Hawks nab seven traffic officials in Khayelitsha for taking bribes

Hawks nab seven traffic officials in Khayelitsha for taking bribes

Western Cape Hawks spokesperson says those who paid the bribes will also be arrested.

Storm in a 'G' Cup -  why are SA clothing retailers ignoring big-breasted women?

Storm in a 'G' Cup - why are SA clothing retailers ignoring big-breasted women?

Many women say they are forced to buy bras from overseas and import them to SA at great expense.

Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Vans' brand manager says although this is a recurring problem its main concern is that this particular "fake" is a very close copy.

10 safety tips from Sanparks following latest robbery at Table Mountain camp

10 safety tips from Sanparks following latest robbery at Table Mountain camp

The Slangkop Tented Camp in Kommetjie was hit by thieves the weekend. Here's advice on how to keep safe in the area.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Eskom has warned that more power cuts can be expected as maintenance continues over the next twelve months.

Motorist who killed two goslings has been identified

Motorist who killed two goslings has been identified

According to the SPCA, he will be charged with contravention of the Animal Protection Act.