S&P is concerned that political tension is stifling economic reform
POLITICAL tension in SA is making economic reforms more challenging and must be watched, according to S&P Global Ratings."We clearly stated that there is a concern that political tension stifles the reform effort, so that must be watched," S&P MD for sub-Saharan Africa Konrad Reuss said on Thursday. "In the current climate of political tension and turmoil, it’s certainly more challenging now to achieve all the reforms, than one would’ve thought six months ago."S&P affirmed SA’s credit rating at one level above junk, with a negative outlook, in June and said the government had to take decisive steps to bolster growth, quell policy uncertainty and end political interference in institutions to avoid a future downgrade. Reports last month that Finance Minister Pravin Gordhan was being probed by police led to a slump in the rand and bonds.READ THIS: World Bank slashes SA growth forecast in halfWhile economic growth in SA rebounded to 3.3% in the second quarter, following a 1.2% contract...
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