JOHN DLUDLU: Moody’s downgrade may not be the worst thing to happen to SA
Though psychologically devastating, the decision could spur new ideas to deal with fundamental problems plaguing the economy
As is customary, South Africans are going through a state of self-inflicted anxiety. On Friday ratings agency Moody’s Investors Service is due to publish its review of the country’s credit rating. The choices are: to say nothing (issue a research report); keep the rating but change the outlook; or simply downgrade SA to junk. PODCAST: Listen to more commentary on the topic. Subscribe: iono.fm | Spotify | Apple Podcasts | Pocket Casts | Player.fm Though seemingly an unpatriotic thing to say, a downgrade might not be as bad as the emotional roller-coaster ride that comes with anticipating a ratings review announcement. Instead, it might just focus South Africans’ minds on the real crisis facing the country, namely the urgent need for new ideas to get the country out of low growth, rising unemployment and inequality. Of course, a downgrade will be psychologically devastating, especially to small businesses, households and anyone contemplating new debt – itself an unwise idea in this ec...
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