Cape Town – South Africa remains unique in that the crisis it faces regarding the credit rating downgrades is not as deep as elsewhere, according to Lesiba Mothata, executive chief economist at Alexander Forbes Investment Solutions.
“Don’t have an exaggerated view of the downgrades or its economic outcome. I have a glass half full approach,” Mothata said on Wednesday at a seminar hosted by the Cruywagen-IRMSA Risk Foundation.
“People ask if SA is more like Zimbabwe or more like Venezuela. Yet, we have seen spectacular bond performance and globally it looks like there will be continued demand for emerging market debt.”