Johannesburg – Local investors aren’t willing to put their money behind state-owned enterprises amid political and regulatory uncertainty, said economist and strategist Nazmeera Moola.
Moola was speaking at the Discovery Financial Planning Summit held in Sandton on Monday. She shared on the impact of the Cabinet reshuffle on investor confidence.
When President Jacob Zuma replaced Pravin Gordhan as finance minister with former Home Affairs Minister Malusi Gigaba, ratings agencies Standard & Poor’s and Fitch Ratings downgraded South Africa's sovereign rating to junk over policy uncertainty. Fitch also downgraded the local debt rating. Moody’s, which has the sovereign rating two notches above junk, is expected to make an announcement soon.