20°C / 22°C
  • Wed
  • 23°C
  • 12°C
  • Thu
  • 24°C
  • 12°C
  • Fri
  • 23°C
  • 13°C
  • Sat
  • 24°C
  • 14°C
  • Sun
  • 27°C
  • 14°C
  • Mon
  • 25°C
  • 14°C
  • Wed
  • 23°C
  • 13°C
  • Thu
  • 26°C
  • 16°C
  • Fri
  • 26°C
  • 17°C
  • Sat
  • 21°C
  • 13°C
  • Sun
  • 19°C
  • 13°C
  • Mon
  • 25°C
  • 14°C
  • Wed
  • 24°C
  • 14°C
  • Thu
  • 26°C
  • 12°C
  • Fri
  • 24°C
  • 15°C
  • Sat
  • 25°C
  • 15°C
  • Sun
  • 29°C
  • 16°C
  • Mon
  • 26°C
  • 15°C
  • Wed
  • 24°C
  • 12°C
  • Thu
  • 24°C
  • 12°C
  • Fri
  • 25°C
  • 13°C
  • Sat
  • 27°C
  • 15°C
  • Sun
  • 28°C
  • 15°C
  • Mon
  • 27°C
  • 13°C
  • Wed
  • 23°C
  • 18°C
  • Thu
  • 22°C
  • 20°C
  • Fri
  • 24°C
  • 19°C
  • Sat
  • 26°C
  • 20°C
  • Sun
  • 23°C
  • 18°C
  • Mon
  • 22°C
  • 18°C
  • Wed
  • 22°C
  • 17°C
  • Thu
  • 22°C
  • 17°C
  • Fri
  • 23°C
  • 17°C
  • Sat
  • 24°C
  • 15°C
  • Sun
  • 19°C
  • 14°C
  • Mon
  • 20°C
  • 14°C
  • Wed
  • 27°C
  • 17°C
  • Thu
  • 31°C
  • 16°C
  • Fri
  • 32°C
  • 17°C
  • Sat
  • 24°C
  • 11°C
  • Sun
  • 19°C
  • 10°C
  • Mon
  • 30°C
  • 9°C
  • Wed
  • 24°C
  • 16°C
  • Thu
  • 27°C
  • 17°C
  • Fri
  • 26°C
  • 17°C
  • Sat
  • 21°C
  • 12°C
  • Sun
  • 16°C
  • 12°C
  • Mon
  • 24°C
  • 12°C
  • Wed
  • 26°C
  • 15°C
  • Thu
  • 29°C
  • 13°C
  • Fri
  • 26°C
  • 16°C
  • Sat
  • 27°C
  • 17°C
  • Sun
  • 30°C
  • 16°C
  • Mon
  • 29°C
  • 17°C
  • Wed
  • 24°C
  • 13°C
  • Thu
  • 26°C
  • 11°C
  • Fri
  • 29°C
  • 15°C
  • Sat
  • 30°C
  • 16°C
  • Sun
  • 27°C
  • 13°C
  • Mon
  • 29°C
  • 9°C
  • Wed
  • 26°C
  • 15°C
  • Thu
  • 26°C
  • 16°C
  • Fri
  • 22°C
  • 15°C
  • Sat
  • 25°C
  • 16°C
  • Sun
  • 32°C
  • 14°C
  • Mon
  • 20°C
  • 14°C
  • Wed
  • 23°C
  • 15°C
  • Thu
  • 24°C
  • 15°C
  • Fri
  • 25°C
  • 16°C
  • Sat
  • 24°C
  • 13°C
  • Sun
  • 20°C
  • 11°C
  • Mon
  • 22°C
  • 10°C

S&P says concerned about SA's fiscal consolidation, land reform

Recession-hit South Africa, which is rated 'junk' by S&P Global Ratings and Fitch, last week unveiled a bleak budget that saw wider budget deficits and low growth.

Picture: Facebook.

JOHANNESBURG - South Africa’s sovereign rating risked being downgraded due to concerns about the postponement of fiscal consolidation and lack of clarity around land expropriation, a senior S&P Global Ratings analyst said on Tuesday.

Recession-hit South Africa last week unveiled a bleak budget that saw wider budget deficits and low growth. South Africa is rated “junk” by S&P Global Ratings and Fitch.

“It is on those two aspects we would consider lowering the rating,” Ravi Bhatia, Director, Sovereign Ratings at S&P, said, referring to land reforms and fiscal consolidation.

The next rating review by S&P would be on 23 November, he said.

Bhatia said fiscal consolidation had been postponed in the Medium-Term Budget Policy Statement (MTBPS) presented by new Finance Minister Tito Mboweni on Wednesday last week.

“This has been a trend for many years. That the deficits in the MTBPS are being revised upwards ... that feeds into the debt stock where you see it rising towards 60% with no clear stabilisation,” he said.

“And if you look at interest payments as a percentage of revenues, they’re above 10%, and whether they’ll go above our thresholds of 15% is something to watch.”

Bhatia also said: “Sentiment has been dampened by the lack of clarity in the land expropriation.”

South Africa’s ruling African National Congress (ANC) has said it aims to change the constitution to allow for land expropriation without compensation to address racial disparities in land ownership that persist more than two decades after apartheid’s demise in 1994.

President Cyril Ramaphosa has said the policy will be undertaken in a way that does not threaten food security or economic growth. The ANC has said the unused land will be the main target. However, the policy has still unnerved investors worried about the impact on property rights.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus