Credit rating agency Fitch has raised red flags over South Africa's recently announced Inclusive Growth Action Plan.
Finance Minister Malusi Gigaba unveiled the 14-point plan which is aimed at wrenching the country's economy out of a recession.
However, the rating agency says the points outlined in the plan are unlikely to significantly boost economic growth.
Most of the measures announced by Gigaba are nothing new, explains Fitch executive Ed Parker.
Many of the measures we've already heard before. South Africa has not had any shortage of plans in the past.— Ed Parker, Fitch's Head of Europe, the Middle East and Africa Sovereign Ratings
We're skeptical that it is going make a significant impact on boosting growth, improving governance or alleviating fiscal pressures.— Ed Parker, Fitch's Head of Europe, the Middle East and Africa Sovereign Ratings
Parker says the plan lacks major growth-enhancing measures and implementation strategies for governance at state-owned entities.
We see policy uncertainty and government pressures likely to persist until at least after the ANC elective conference in December.— Ed Parker, Fitch's Head of Europe, the Middle East and Africa Sovereign Ratings
He says Fitch downgraded South Africa in April because of evidence of declining standard of governance.
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