SA’s great respite
Behind SA's ratings reprieve
The dial on the national psyche has swung from despair to euphoria over the past three months. With the country having fended off junk status, the final feeling is one of relief
Who would’ve thought just a few months ago, when finance minister Pravin Gordhan was charged with fraud, and the independence of national treasury hung by a thread, that SA would end the year with its investment-grade rating intact? This week, SA marks the first anniversary of Nenegate — the sacking of respected former finance minister Nhlanhla Nene on December 9. It set in motion the appointment of Gordhan, whose subsequent drive with business and labour under the Team SA banner to retain SA’s investment-grade credit rating has ultimately been rewarded. Ironically, President Jacob Zuma has congratulated Team SA for having staved off a downgrade to junk — ironic, because if Zuma hadn’t axed Nene, sending the economy into a skid, the Team SA initiative would probably never have been needed. The good news last Friday night, that S&P Global Ratings had affirmed SA’s "BBB-" foreign currency rating, caused the rand to firm to around R13.80/$ from R13.95/$ at Friday’s close. It was a clos...
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