Streaming issues? Report here
Refiloe Mpakanyane 1500 x 1500 2020 Refiloe Mpakanyane 1500 x 1500 2020
Weekend Breakfast with Refiloe Mpakanyane
06:00 - 10:00
volume_up
volume_mute

Up Next: Soulful Sundays with Kenny Maistry
See full line-up
Weekend Breakfast with Refiloe Mpakanyane
06:00 - 10:00
Home
arrow_forward
Business

Is South Africa on the brink of default? No, says Ramaphosa economic advisor

23 November 2020 6:28 PM
Tags:
Cyril Ramaphosa
Tito Mboweni
Fitch
The Money Show
Bruce Whitfield
Trudi Makhaya
Moody's
negative outlook
S&P
BB-
BA2

South Africa's economy is a piece of junk. Bruce Whitfield interviews Trudi Makhaya, the Presidential economic advisor.

Late on Friday, Moody’s announced its latest downgrade of South Africa’s credit rating by one notch (to BA2).

It’s also maintaining the country’s “negative outlook”, suggesting further downgrades are probably imminent.

Fitch also downgraded South Africa (from BB to BB-), also with a negative outlook.

pixabay.com

Right now, trending on The Money Show:


Moody’s acknowledges the government’s plans to improve the country’s fiscal position but says that “implementation risks” have risen.

Fitch highlighted rising government debt, weak growth, and high inequality for its decision.

Both rating agencies mentioned the effect of the lockdown on the country’s fiscal strength as a reason for their downgrades of South Africa.

S&P Global is keeping its ratings for South Africa at BB- (foreign currency) and BB (rand), both with a stable outlook.

Not since 1994 have the country's "rand" ratings been this low.

All the progress achieved over the past 25 years (our ratings peaked in 2006 at A+ with S&P) has now been wiped out.

In reaction to the announcements, Finance Minister Tito Mboweni repeated a familiar refrain, that there’s a burning need for the government to implement structural reforms to avoid further downgrades.

Mboweni begged South Africans to adhere to Covid-19 regulations such as mask-wearing to avoid a second wave of infections, which would abruptly end the nascent economic recovery.

The Money Show’s Bruce Whitfield interviewed Trudi Makhaya, economic advisor to President Cyril Ramaphosa.

I don’t think this is an indictment of the President’s plan…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

Is South Africa on the brink of default? … We don’t suffer issues of countries such as Venezuela… There hasn’t bee a spike [in the bond yield] … We’re not on the brink of default.

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

They’re cautioning us… we need to deliver… We’re embarking on reforms… Our fundamentals aren’t at the point of doom and gloom.

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

We’re going to remove barriers to investment… irritating red tape that businesses encounter… Government wants to work with the private sector…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

We’re a mining country… We need the exploration dollars…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

The pace of reform must be accelerated…

Trudi Makhaya, economic advisor - President Cyril Ramaphosa

Listen to the interview in the audio below.


This article first appeared on CapeTalk : Is South Africa on the brink of default? No, says Ramaphosa economic advisor




23 November 2020 6:28 PM
Tags:
Cyril Ramaphosa
Tito Mboweni
Fitch
The Money Show
Bruce Whitfield
Trudi Makhaya
Moody's
negative outlook
S&P
BB-
BA2

More from Business

Economy in 2021: 'Expect a better year for South African assets'

15 January 2021 3:02 PM

An economist expects China growth at 9.5%, US money-printing, rising metal prices and trade- and current-account surpluses in SA.

Share this:
Read More arrow_forward

Retirement funds in SA are changing – new laws come into effect on 1 March 2021

15 January 2021 1:23 PM

Bruce Whitfield asks personal finance advisor Warren Ingram to explain in detail the new laws affecting provident funds.

Share this:
Read More arrow_forward

Wine industry runs out of storage due to ban - R1.5b's worth could be lost

14 January 2021 9:06 PM

A new harvest is imminent and there's no more space for unsold wine. We have the highest stock level ever - Vinpro's Rico Basson

Share this:
Read More arrow_forward

Don't fall for promises of high returns from latest investment scam, warns FSCA

14 January 2021 8:19 PM

A new scam is surfacing on Facebook and WhatsApp groups. The masterminds are even using the FSP number of a legitimate company.

Share this:
Read More arrow_forward

'Thank you Mr President for not shutting us down, but we need more support!'

14 January 2021 7:35 PM

Loadshedding is another blow to the struggling restaurant industry. We need more relief says Grace Harding (Restaurant Collective)

Share this:
Read More arrow_forward

Pick n Pay announces retirement of CEO credited with retailer's turnaround

14 January 2021 6:41 PM

Richard Brasher will be replaced by Netherlands-born Pieter Boone in April. A retail expert evaluates Brasher's performance.

Share this:
Read More arrow_forward

Telegram now counts 500m active users. 'People are rebelling against Facebook!'

13 January 2021 9:03 PM

The new privacy policy being implemented by WhatsApp's parent company is the straw that broke the consumer's back - Toby Shapshak

Share this:
Read More arrow_forward

Mindful drinking: 'Non-alcoholic drinks having a heyday in SA right now'

13 January 2021 8:28 PM

Non-alcoholic drinks can be seen on shelves just about everywhere. Bruce Whitfield interviews Mindful Drinking SA's Sean O'Connor.

Share this:
Read More arrow_forward

Singh must provide affidavit by Monday after non-appearance at Zondo Commission

13 January 2021 7:47 PM

Former Eskom CFO Anoj Singh will still have to appear after not testifying as scheduled, says EWN's Gaye Davis. But will he sing?

Share this:
Read More arrow_forward

A Social Reckoning

13 January 2021 7:15 PM

How to balance free speech with constructive engagement and manage it all as a business.

Share this:
Read More arrow_forward