RISING political risk carries the threat of disrupting policies aimed at growing the economy, bringing SA closer to a sovereign credit rating downgrade in three months. Credit rating agencies identified the local government elections and the uncertainty surrounding whether Finance Minister Pravin Gordhan will be charged by the Hawks as the main political risks facing SA. The country cleared the first hurdle, but the hangman’s noose is tightening on the second one, which has seen the rand take a dive and big money pull out of lending to state-owned entities. BNP Paribas Cadiz economist Jeff Schultz said the political risk affected meaningful foreign direct investment to SA. Moody’s has cited domestic politics as the biggest factor that will affect SA’s credit rating. Co-operative Governance Minister Desmond van Rooyen and Deputy Defence Minister Kebby Maphatsoe, speaking in their capacities as Umkhonto weSizwe Military Veterans Association executives, poisoned the well further by cri...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.