Streaming issues? Report here
CapeTalk_2021_Top_Corner 1000 x 1000 CapeTalk_2021_Top_Corner 1000 x 1000
Best of CapeTalk
22:00 - 00:00
volume_up
volume_mute

Up Next: Early Breakfast with Africa Melane
See full line-up
Best of CapeTalk
22:00 - 00:00
Home
arrow_forward
Business

Is South Africa on the brink of default? No, says Ramaphosa economic advisor

23 November 2020 6:28 PM
Tags:
Cyril Ramaphosa
Tito Mboweni
Fitch
The Money Show
Bruce Whitfield
Trudi Makhaya
Moody's
negative outlook
S&P
BB-
BA2

South Africa's economy is a piece of junk. Bruce Whitfield interviews Trudi Makhaya, the Presidential economic advisor.

Late on Friday, Moody’s announced its latest downgrade of South Africa’s credit rating by one notch (to BA2).

It’s also maintaining the country’s “negative outlook”, suggesting further downgrades are probably imminent.

Fitch also downgraded South Africa (from BB to BB-), also with a negative outlook.

pixabay.com

Right now, trending on The Money Show:


Moody’s acknowledges the government’s plans to improve the country’s fiscal position but says that “implementation risks” have risen.

Fitch highlighted rising government debt, weak growth, and high inequality for its decision.

Both rating agencies mentioned the effect of the lockdown on the country’s fiscal strength as a reason for their downgrades of South Africa.

S&P Global is keeping its ratings for South Africa at BB- (foreign currency) and BB (rand), both with a stable outlook.

Not since 1994 have the country's "rand" ratings been this low.

All the progress achieved over the past 25 years (our ratings peaked in 2006 at A+ with S&P) has now been wiped out.

In reaction to the announcements, Finance Minister Tito Mboweni repeated a familiar refrain, that there’s a burning need for the government to implement structural reforms to avoid further downgrades.

Mboweni begged South Africans to adhere to Covid-19 regulations such as mask-wearing to avoid a second wave of infections, which would abruptly end the nascent economic recovery.

The Money Show’s Bruce Whitfield interviewed Trudi Makhaya, economic advisor to President Cyril Ramaphosa.

I don’t think this is an indictment of the President’s plan…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

Is South Africa on the brink of default? … We don’t suffer issues of countries such as Venezuela… There hasn’t bee a spike [in the bond yield] … We’re not on the brink of default.

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

They’re cautioning us… we need to deliver… We’re embarking on reforms… Our fundamentals aren’t at the point of doom and gloom.

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

We’re going to remove barriers to investment… irritating red tape that businesses encounter… Government wants to work with the private sector…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

We’re a mining country… We need the exploration dollars…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

The pace of reform must be accelerated…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

Listen to the interview in the audio below.




23 November 2020 6:28 PM
Tags:
Cyril Ramaphosa
Tito Mboweni
Fitch
The Money Show
Bruce Whitfield
Trudi Makhaya
Moody's
negative outlook
S&P
BB-
BA2

More from Business

Home exercising and online shopping trends a boon for fitness-related businesses

3 March 2021 8:50 PM

Sales of fitness products are soaring as the pandemic focuses attention on health improvement and home exercise.

Share this:
Read More arrow_forward

Small honey producer takes on Food Lover's Market in trademark battle

3 March 2021 7:37 PM

'Nature's Gold' was trademarked by the KZN startup. FLM should have checked properly, admits its legal director on The Money Show.

Share this:
Read More arrow_forward

Non-Fungible Tokens - stupid and brilliant at the same time

3 March 2021 7:15 PM

Get yours before the bubble pops

Share this:
Read More arrow_forward

Govt 'admits' private sector could buy vaccines, but it's not that simple

3 March 2021 6:49 PM

Currently, vaccine manufacturers won't sell to businesses responds Profmed CEO Craig Comrie after Afriforum legal challenge.

Share this:
Read More arrow_forward

Hospitality industry blocks new labour rules for restaurants - for now

3 March 2021 6:39 PM

The hospitality sector has been granted an urgent interdict to halt the implementation of new labour rules amid an ongoing collective agreement fight.

Share this:
Read More arrow_forward

Bellville set to become second Cape Town CBD

3 March 2021 4:15 PM

UCT African Centre For Cities' Edgar Pieterse says reimagining Bellville is not something in the future. It is already happening.

Share this:
Read More arrow_forward

Doom ad not racist says ARB. But why pair Doom and food in the first place?

2 March 2021 8:52 PM

After a complaint, Tiger Brands has added 'don't spray on food' to campaign showing man's meal interrupted by a flying insect.

Share this:
Read More arrow_forward

Tough times for Spur, but new SA outlets in the pipeline

2 March 2021 7:55 PM

Spur's profits plummeted in the wake of lockdowns, but the loyalty of customers is 'quite amazing' says Group CEO Val Nichas.

Share this:
Read More arrow_forward

Cashbuild doubles its profit as lockdowns boost desire for home improvement

2 March 2021 7:11 PM

Not all businesses suffered losses because of the pandemic. Bruce Whitfield interviews Cashbuild CEO Werner de Jager.

Share this:
Read More arrow_forward

Molefe evasive, but maintains Ramaphosa integral to state capture at Eskom

2 March 2021 6:52 PM

Zondo Commission: Former Eskom CEO Brian Molefe repeated allegations about the capture of Eskom by Glencore and Ramaphosa.

Share this:
Read More arrow_forward