The decision by Moody’s Investors Service to confirm South Africa’s credit rating at investment grade and to change the outlook from negative to stable affirms the work of the African National Congress-led government, together with its social partners, to implement measures aimed at recovery of the South African economy as well as sustaining the ongoing positive mood, the ANC said on Saturday.
On Friday night, Moody’s said it had taken a decision to affirm South Africa’s long-term foreign and local currency debt ratings at “Baa3” and also to revise the outlook from negative to stable, because previous deterioration of the country’s institutions would gradually reverse under a more transparent, predictable policy framework.
ANC spokesman Pule Mabe said that while this decision offered a welcome reprieve, much more remained to be done to ensure that the economy remained on the correct trajectory. The ANC reaffirmed its commitment to support government in the quest to strike the necessary balance between fiscal consolidation and investment in pressing social needs, including the development of economic and social infrastructure and consolidating the social security net which the most vulnerable in society relied on.
The ANC commended government, the private sector, labour, and civil society for their collaborative approach to resolving the problems that continued to constrain the economy, he said.
“We call on them to continue to work together to create conditions that will yield higher levels of economic growth required to create jobs and restore confidence through, among others, restoring the credibility and proper governance of our state-owned companies.
“The ANC is further encouraged by the latest developments which are consistent with the commitments of the collective leadership of the national executive committee to pursue focused programs on renewal, unity, and jobs during the centennial year of Nelson Mandela,” Mabe said.
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