The Fitch rating agency has also downgraded South Africa to junk status. Fitch is the second rating agency to downgrade SA to junk status, and it could lead to certain international investors pulling out their investments from SA.
According to Fitch, the political instability and the recent cabinet reshuffle, including the removal of Pravin Gordhan and his deputy could result in a change of economic policies.
Fitch also noted that the tensions within the ANC could lead to further instability.
Another factor mentioned was the differences over the country’s expensive nuclear program and the possibility that there would be an increase in contingent liabilities, which were already sizable. In Fitch’s view this may have also contributed to the decision for the recent cabinet reshuffle.
Read the original article in Afrikaans on Maroela Media
South Africa Today – South Africa News
