Downgrade is multifaceted

2016-11-30 06:01

THERE has been much speculation about an impending downgrade to junk status. The implications of a downgrade is multifaceted especially in terms of investment into our economy.

Other countries eager to invest in South Africa use the ratings as barometer to gauge the amount of money they want to put into our country. The general rule of thumb is that countries that do not have the their monetary and fiscal policies in place, where corruption is rampant and where the political climate is unstable, will be overlooked as an investment destination by other potential countries willing to pump money into our economy.

With the recent announcement by Stats SA that our unemployment rate has increased from 26.6% to 27.2% is not good news for our country and economy.

Fundamentally our priorities in SA need to be refocused. Pravin Gordhan needs to be left alone to do his job. If the Hawks and NPA feel there is case against the minister or anybody else, please bring forth authentic evidence that will stand up in our courts.

South Africa can no longer afford the use of state apparatus to settle scores. If this practice continues we are going against the 55 million people who suffer because of clandestine decisions made to the detriment of our country and economy.

For now SA can triumph in the glory of not being downgraded thanks to the sterling efforts of minister Pravin Gordan and his team together with other stakeholders who clearly comprehend the ramifications of a downgrade.

The reality off the situation is that we have staved off a downgrade temporarily. There is still work that’s needs to be done. With our fragile political leadership and spontaneous destructive policy decisions like firing and changing finance ministers together with issues of state capture.

SA has a long way to go. Our economy is not growing at the expected rate and next year we going to be taking on more debt and our political climate is continuously coming under scrutiny.

Ultimately we can celebrate for now, but hard work lies ahead. South Africa can only prosper to be a great nation if all, especially state institutions, remain focused on creating a winning nation. This obviously lends itself to sound honest leadership.

vijay surujpal Via email

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