The land redistribution debate will likely be among the key concerns raised by Fitch rating agency when they issue a review on South Africa on Friday.
Nedbank Chief Economist Dennis Dykes says land and addressing the structural issues in the economy will likely be highlighted.
He says while the land debate is being handled carefully by government, it does contribute to delays in investment decisions.
Speaking on the sidelines of the NedGroup’s Treasurers’ conference, Dykes says Fitch will likely keep the country’s ratings unchanged.
The agency affirmed the country’s rating at BB+ with a stable outlook in November. Economists say the agency will most likely acknowledge positive policy developments and the improved outlook under the country’s new leadership.
Chief Economist at Stanlib, Kevin Lings says, “The first quarter GDP was weak, but they’re number of other positives that referred to, the fact that budget in February was much better, the fact that government is making significant changes at the state owed Enterprise companies. I think that will improve the state of finances broadly. I think Fitch will be concerned about the land expropriation without compensation. I don’t think it’s enough to reside in any change in the credit ratings. So I’m expecting the credit rating to remain unchanged.”
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