CAPE TOWN- South African economy and the government is breathing a little easier after ratings agency Moody’s ugraded the country’s outlook for the country.
The country economy went from being rated negative to stable, with the Moody’s keeping its investment-grade rating on the country, crediting the president.
The South African Treasury quickly welcomed the decision and acknowledged the warning from Moody’s that the improvement of political and policy uncertainty were essentials in holding on to the country’s rating.
Ramaphosa since he has taken office has done a cabinet reshuffle, axed dodgy ministers, initiated more corruption investigations into the the Guptas, Jacob Zuma appears to have been given a boot by the ANC in all matters and Eskom’s new bosses are trying to turn around the state utility.
Ramaphosa has suspended SARS commissioner Tom Moyane and Moody’s says the steps taken from the president have been positive.
Moody’s said in a statement, “The confirmation of South Africa’s ratings reflects Moody’s view that the previous weakening of South Africa’s institutions will gradually reverse under a more transparent and predictable policy framework.”
The Treasury added in their statement, “To improve South Africa’s investment and economic prospects, the government continues to work diligently on practical steps to provide the necessary policy certainty.”
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