Political Economist Israel Mkhize says South Africa will need strong leadership to deal with the issues behind the latest credit rating setback.
Ratings agency Fitch changed the country’s outlook to negative from stable over concerns about large amounts of cash being used to support Eskom, SAA and other State Owned Enterprises (SOEs).
Fitch downgraded South Africa from investment grade in 2017.
Treasury agrees that national government faces some tough decisions.
It has given the assurance that it’s committed to ensuring that Eskom and other SOEs are stabilised to make them sustainable.
Mkhize says we may be able to reverse the trend.
“We might depend on the assertiveness of the elected leadership, they have to be assertive. Because President Ramaphosa was democratically elected in his political party and he was given a mandate by the people of South Africa. South Africans are leaning heavily on the economy and it needs leadership from him.”
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