Fitch says Ramaphosa’s stimulus plan unlikely to boost growth much

The president on Friday announced the plan to pull the economy out of recession.

FILE: President Cyril Ramaphosa unveils an economic stimulus package at the Union Buildings in Pretoria on 21 September 2018. Picture: @PresidencyZA/Twitter

JOHANNESBURG - South African President Cyril Ramaphosa's multi-billion dollar plan to turnaround the economy will do little to lift the country's sluggish economic growth rate, ratings agency Fitch said on Tuesday.

"South Africa's latest economic plan is unlikely to deliver a significant boost to economic growth," said Fitch, which rates Pretoria's foreign and local currency debt at subinvestment, adding that rand's recent plunge would also hinder the plan.

"The plan does include measures that could support growth, but many relate to long-standing policy ideas that have been slow to implement," Fitch said of the plan announced by Ramaphosa on Friday to pull the economy out of recession.