Investors want action

AMID the drama of staving off damaging credit ratings, mutterings emerged about the power of the three ratings agencies that judge our worth as a global investment destination.

True, these agencies hold powerful sway. They are not elected, nor do they boast any globally revered figures, so who are they to be telling a democratically elected government what to do?

Over the years, these agencies have developed their reputations and become internationally trusted advisers, setting standards that declare countries a good risk as business partners – or not.

South Africa is one rung away from a dreaded sub-investment grading. But rating trio Moody’s, S&P and Fitch have just decided against relegation, which would have forced many foreign investors to withdraw their money.

For the next six months, that is. Until the next grading.

So they remain bound to the country’s future, in spite of resentment at their influence.

Fortunately, all, including the government, are viewing it as a reprieve.

Come December, the public and private sectors will have to impress again.

PLANS and earnest statements of intention will not do so next time. The months ahead are about implementation of measures agreed in recent months of meetings and deliberations.

“People who have an interest in South Africa, including ourselves, don’t want any more plans,” Finance Minister Pravin Gordhan said. How true.

“What they want is action. They don’t want to hear about promises,” said Gordhan.

It is now about visible milestones, and real economic recovery. This should keep government leaders fully occupied.

On top of local government elections seven weeks away, and our GDP shrinking in the first quarter, their immediate challenges are enormous.