SOUTH Africa’s finance minister said on Thursday that a third wave of the coronavirus could destabilise the government’s efforts to control its finances and avoid a further downgrade of the country’s sovereign rating.
Two of the top three rating agencies – Moody’s and Fitch – downgraded South Africa’s sovereign rating further into junk in November on concerns of rising debt levels and the government’s ability to raise revenues and pay off debt amid the economic shock inflicted by the pandemic.
Tito Mboweni, replying to questions in a virtual parliament session, said the rating agencies would be looking closely at how the government was moving on its promised structural reforms such as infrastructure growth, telecom spectrum allocation, reliable power supply and reducing the public sector wage bill.
“If it (reform) was seen to be deviating from our fiscal framework, then we’re going to be in trouble,” Mboweni said, and warned that
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
