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SA’s investment case in light of the recent Moody’s outlook is the focus of this edition of the Business Day Spotlight. 

Our host Mudiwa Gavaza is joined by George Glynos, co-founder, director and head of research at ETM Analytics.

ETM is a financial markets research and advisory firm with expertise in bonds and foreign exchange.

The discussion focuses on the state of financial markets in light of the stable outlook on SA’s economy assigned by ratings agency Moody’s a week ago. With the dust having settled, what are investors concerned about at the moment?

Join the discussion: 

Moody’s Investors Service changed the outlook on SA’s debt from negative to stable, citing an improvement in the country’s fiscal position as the government stuck to its debt consolidation plans and the country benefited from higher commodity prices.

The agency, which has SA’s debt rated two levels below investment grade, said the change in outlook was due to the likelihood of the government’s debt burden stabilising over the medium term. It expects debt as a proportion of GDP to settle at about 80%, compared with its previous forecast that it would keep rising.

Mudiwa Gavaza. Picture: DOROTHY KGOSI
Mudiwa Gavaza. Picture: DOROTHY KGOSI

Glynos, whose firm has been covering fixed income and foreign exchange markets for 16 years, says the outlook is certainly positive for SA, but more needs to be done to turn around the economy. 

He says higher commodity prices give more opportunity for SA to implement structural reforms that have been promised to get the country back on the path of growth. 

Topics of discussion include: Moody’s recent outlook for the SA economy; how financial markets have received the news; what still needs to be done for an upgrade in the investment rating to happen; the recent surge of Covid-19 cases globally; and the impact of the Russia-Ukraine war. 

Engage on Twitter at #BDSpotlight

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 Business Day Spotlight is a MultimediaLIVE production.


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