CEO Initiative, established under Pravin Gordhan, concerned about capital outflows after downgrade
Initiative expects the downgrade to put further strain on the record-low levels of business and consumer confidence
S&P’s downgrade, which has placed SA firmly in junk status with the agency, is a huge blow to SA’s fragile economic growth prospects, according to the CEO Initiative, which was established under former Finance Minister Pravin Gordhan. In a statement following the ratings announcements on Friday, the initiative said: "While this downgrade does not cause SA’s government debt to be excluded from the World Government Bond Index, it will likely lead to capital outflows at a time when our country needs it most. The initiative expected the downgrade to put further strain on the record-low levels of business and consumer confidence. Jabu Mabuza, Convenor of the CEO Initiative, said: "All the negative ratings actions that the country has suffered so far could and should have been avoided, had the required structural reforms necessary to underpin sustained and inclusive economic growth been implemented in the interests of all South Africans. "The CEO Initiative has spent much time over the la...
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