. It is fully aware of what will happen if its rating dumps South Africa out of the bond indexes that force foreign buyers with index mandates to buy our debt. Exclusion from those indices would lead to substantial capital outflows from South Africa’s bond market and would lead, at least in the short term, to currency depreciation – and so higher inflation for us.
To avoid that requires an ideological shift away from putting the state at the centre of the economy and allowing greater private sector participation in state monopolies. It requires better governance and transparency and needs to see those that carried out the grand state capture heist behind bars.
Up until now, all the ratings agencies have seen is a promise of improvement. And to be fair much progress has been made in at least acknowledging the real problems that the country faces. South Africa needs to move from talking about what needs to be done to doing the hard work and making the hard choices that will invariably upset the ANC’s core constituency and its alliance partners. But it has not choice.
brucebusiness So much hope for Tata Madiba's Nation
brucebusiness Sobering. Honest. Worrying.
brucebusiness South africans are just never happy with anything. We should be grateful they did not downgrade us!
brucebusiness Agree 😵😵😵👀👀👀😝
brucebusiness Let's be realistic, anyone who invests in SA with ANC / EFF in power has crap for brains. Thankfully, overseas investors are a lot wiser. They probably also waiting for 8 May.
brucebusiness Agrizzi was paying them money 🤷♂️ May be they are now still shocked with such revealations