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

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.