Jump to content
Afrii Diaspora Dialogue
  • Good news: Ratings agency changes SA’s outlook from stable to POSITIVE

    Good news: Ratings agency changes SA’s outlook from stable to POSITIVE

    We may almost spend R22 million on a giant flag. But, we may also be doing a few new things right when it comes to making business a little easier to do. Despite constant bad news with Eskom sabotage and a near-constant Stage 2 of power cuts, credit ratings agency S&P has given the country a boost.

    Ratings agency S&P upgrades SA credit rating

    S&P has revised South Africa’s credit rating outlook from “stable” to “positive”.

    “The positive outlook reflects our expectation that favorable terms of trade, a path toward contained fiscal expenditure, and the implementation of some structural reforms could lead to a continued easing of fiscal and external pressures.

    We could raise the ratings if economic growth is higher than we currently expect, and if we see continued fiscal consolidation, against a backdrop of structural and governance reforms and continued supportive external sector dynamics.”

    S&P said in a statement

    ALSO READ – ‘You’re a distraction’: Mmusi Maimane takes swipe at Nhlanhla Lux

    S&P warns that it could still change its mind. The outlook could be moved back to stable if “external or domestic shocks” derail our economic growth. The agency says that financing risks from entities like Eskom, are exactly the kind of shocks that could destabilise things.

    Government expected to ‘make progress’

    While explaining its decision, the ratings agency says that it expects our government to make some progress in tackling structural issues.

    S&P notes that South Africans are growing more and more frustrated too. It says that social pressure on government is set to remain high. That’s as a result of frustration over high unemployment, inequality and weak delivery of basic services.

    And any word on COVID and more lockdowns? The agency believes that due to low hospitalisation numbers, it does NOT expect government to return to another state of disaster.

    View the full article



    User Feedback

    Recommended Comments

    There are no comments to display.

    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


Afrii-Diaspora Dialogue

A Platform for Dialogue for the African diaspora

A cultural and community website with a GO.A.L. to UpLift™, EmPower™ & UnIfy™ the many different peoples, histories, cultures and communities of the Afrikan Diaspora.

Main links

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue. Guidelines, Privacy Policy, Terms of Use