Mining can help change SA’s economic outlook after Covid-19, says council

CAPE TOWN  – The minerals council of South Africa has said it believes that mining could be critical and effective in helping to boost economic recovery after the country emerges from the Covid-19 crisis.

According to the council, South Africa would be required to pass a set of constructive economic reforms to improve its financial performance and productivity. 

“These measures are also going to be critical for achieving previously set targets to reduce poverty and unemployment. Unfortunately, the only way South Africa can return to a reasonable investment grade will be through significant economic restructuring, especially since Moody’s has now lowered South Africa’s credit rating,” the council said in a statement.

“Earlier this year, the country’s economic growth forecast was similarly greatly reduced, boosting the need for sizeable economic restructuring.”

South Africa is currently under a five-week lockdown, which is due to be lifted at the end of April. The lockdown, which has brought economic activity to a halt, was imposed by government to curb the spread of the coronavirus.

Source: iol.co.za