Fitch: SA economy on the mend but rot in SOEs a concern

Fitch says Treasury's plan to raise value-added tax to stabilise debt and rake in more revenue represents a partial reversal of recent fiscal deterioration.

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CAPE TOWN - There's a glimmer of hope that South Africa may be able to avoid further credit ratings downgrades.

Ratings agency Fitch says the rot at some state-owned companies remains a worry.

But it adds Treasury's plan to raise value-added tax to stabilise debt and rake in more revenue represents a partial reversal of recent fiscal deterioration.

Meanwhile, S&P Global is also optimistic about the country's economy under a new president.

The agency's Konrad Reuss was in Cape Town this week for a post-budget event.

“There’s a lot of goodwill out there now to get it right and to bring the economy back on a more sustainable growth path. However, it’s not going to be easy.”