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Reform of state owned enterprises key to avoid downgrades - economists

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Cape Town - Reform of state owned enterprises (SOEs) is crucial for South Africa in terms of future decisions by ratings agency Standard and Poor's (S&P), Arthur Kamp, investment economist at Sanlam Investments, told Fin24 on Wednesday.

This is considering government guarantees on state owned companies’ debt.

In part, kick-starting a higher growth rate depends on efficiently functioning SOEs, said Kamp. This is because SOEs provide the infrastructure without which economic expansion is constrained.

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