for subscribers

Zuma errors push SA to fix policy, says Standard Bank

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
President Jacob Zuma. (Waldo Swiegers, Bloomberg)
President Jacob Zuma. (Waldo Swiegers, Bloomberg)

Johannesburg - President Jacob Zuma’s policy missteps at the end of last year may be the catalyst that pushes the government to implement reforms needed to avert a credit rating downgrade to junk, according to Standard Bank.

"The events of December may have been the cathartic experience that South Africa needed,” Standard Bank economist Goolam Ballim said in Johannesburg on Tuesday. “It has dawned very heavily on the authorities that the risk of falling into sub-investment grade looms very perilously large.”

The rand went into free-fall and bond yields soared after Zuma unexpectedly fired Finance Minister Nhlanhla Nene on December 9 and replaced him with a little-known lawmaker. He was forced to backtrack four days later, reappointing Pravin Gordhan to a post that he’d occupied from 2009 to 2014.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
17.05
(-0.92)
ZAR/GBP
21.89
(-0.49)
ZAR/EUR
19.91
(-0.19)
ZAR/AUD
11.98
(-0.48)
ZAR/JPY
0.16
(-0.18)
Gold
1861.07
(+0.04)
Silver
22.88
(+0.12)
Platinum
844.51
(+0.50)
Brent Crude
42.23
(-0.12)
Palladium
2207.00
(+0.59)
All Share
53587.11
(-1.22)
Top 40
49547.74
(-1.16)
Financial 15
9401.28
(-1.95)
Industrial 25
72949.70
(-1.72)
Resource 10
53453.42
(-0.10)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1368 votes
It depends on how the funds are used.
73% - 8870 votes
No. We should have gotten the loan elsewhere.
16% - 1959 votes
Vote