Credit ratings agency S&P Global downgraded South Africa’s rating to full junk status on Friday, while Moody’s has placed the country on review for downgrade.
This has long been speculated on, given the country’s economic and political front.
Meanwhile, a fortnight ago Finance Minister Malusi Gigaba attended an investment conference in the US, and Asia trying to lure investors into the country. It is yet to be seen whether that exercise will sway potential investors.
A senior lecturer in the Department of Economics at the University of Johannesburg Dr Peter Baur says that as the economy tries to grow the amount of jobs that are created is not sufficient to support the people that are entering in the market.
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