Fitch’s rating is clear evidence that the politics is killing the economics in SA

The decision by Fitch Ratings (“Fitch”) to affirm its sovereign credit rating at “BBB-” and revise down its outlook to “Negative” is clear evidence that the politics is killing the economics in South Africa.

Despite noting that the economy may have started recovering, Fitch identifies “political risk” as the key “rating driver” in South Africa.

The “infighting within the ANC” and “ANC factional battles” had the effect of:

- distracting policymakers and leading to mixed messages, which undermined investor confidence and economic growth; and

- undermining efforts to improve governance and the streamlining of State-Owned Enterprises.

The fact is that the decision by Fitch to revise its sovereign credit rating to BBB- (Negative Outlook) is a massive indictment of President Jacob Zuma’s leadership on the economy in South Africa.

Statement issued by David Maynier, DA Shadow Minister of Finance, 25 November 2016