Fitch, economists remain unconvinced
After outlining plans to deal with the energy crisis and commitments to government spending cuts in the State of the Nation Address (Sona) on Thursday, Ramaphosa said Mboweni would provide flesh to the skeleton in his Budget Speech later this month.
But Fitch ratings agency remained unconvinced by Ramaphosa’s plans to deal with the prevailing crucial issues of economic under-performance. Fitch said the impact of the growth-enhancing measures announced by Ramaphosa would be limited, and would accumulate only over the long term.
“The scale of the challenges outlined in the South African president’s State of the Nation Address highlights factors behind Fitch Ratings’s negative outlook on the South Africa sovereign rating of ‘BB+’,” it said.
“Ramaphosa’s speech promised progress but offered only partial detail on key policy areas, including stabilising the electricity sector, improving public finances, accelerating growth and land reform.”
Source: iol.co.za