South Africa’s Treasury has pledged to focus on debt stabilisation in the medium term. This following Moody’s Investors Service's recent cut of its outlook on South Africa from 'stable' to 'negative'.
Moody's cited structural challenges in the country's mining industry as well as ongoing fiscal pressures due to high unemployment and poverty as reasons for the change. It also highlighted South Africa's increasing political pressures.
Moody's said:
"Political pressures growing, calling into question the government's continued ability to maintain spending restraint."
Meanwhile, a statement issued by the Treasury said that government will stay the course of sound fiscal management and focus on fiscal consolidation and debt stabilisation in the medium term. It added that the reappointment of Pravin Gordhan (pictured) as SA's finance minister would ensure policy continuity.
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