South Africa’s focus on reforms not ratings, minister says at Davos

South Africa is focusing on implementing growth-enhancing reforms not regaining its investment-grade credit rating, which could take two years or more, its finance minister said on Monday.

The three big credit ratings agencies have South Africa in sub-investment grade, or “junk”, status.

S&P Global raised the outlook on the sovereign rating to “positive” in November, citing improved reform potential under the coalition government that was formed last year. That led to speculation that ratings upgrades could follow soon.

“Our focus is ‘how do we resolve our structural problems?’ involving massive structural reforms, whose effect would be to lay the foundation for growth,” Finance Minister Enoch Godongwana told Reuters in an interview at the World Economic Forum’s annual meeting in Davos, Switzerland.

Asked how long it could take for South Africa to regain its investment-grade rating, Godongwana said: “Give or take two years”.

Last year’s broad coalition between the long-ruling African