The Standard and Poor (S&P) rating agency released its outcome on SA economy outlook yesterday. The agency expressed concerns over outside factors that continue to place tremendous pressure on SA economy.
However, the rating agency commended ANC government on it’s decision to intervene on Eskom’s ability to supply sustainable energy to the country. President Zuma led a team that worked with Eskom to develop a new strategy to supply energy to the country. Load shedding has since became a thing of the past.
“Eskom, the state-owned power utility, has improved the energy supply through a better maintenance program, managing demand in peak periods, and by additions from its new power plants and from independent power producers. The combined measures have helped eliminate load shedding, which was prevalent in the last winter cycle and depressed overall 2015 economic growth. The second is labor reform.” read S&P rating agency statement.
Media had speculated that the agency was going to downgrade South Africa. Instead the rating was left unchanged and South Africa escaped the second downgrade after Moody’s rating showed confidence on SA economy.
The S&P rating agency also commended South Africa for it’s strong democratic system.
“South Africa has strong democracy with independent media and reporting. We believe South Africa will continue to maintain strong institutions such as the Public Protector and the Judiciary, which provide checks and balances.” read S&P statement.
By: Sicelo Mncwango