Ramaphosa talks to Moody’s on economy

PRESIDENT Cyril Ramaphosa held talks with Moody’s yesterday on the various initiatives under way to accelerate the country’s economic growth and create jobs.

Moody’s is set to announce its latest outlook on South Africa on March 23.

At the meeting‚ Ramaphosa also reaffirmed that accelerated land reform would unfold within a clear legal framework and without negative effects on economic growth.

This was the first time Moody’s, a provider of credit ratings‚ research and risk analysis, had interacted with Ramaphosa since his election as president last month.

Ramaphosa’s meeting with Moody’s follows one Finance Minister Nhlanhla Nene had with the ratings agency on Monday‚ at which he outlined the government’s economic and fiscal plans.

The Presidency said that in the meeting at Tuynhuys in Cape Town‚ Ramaphosa described the new mood of hope‚ renewal and unity in South Africa – and the enthusiasm of its people to contribute to change and development.

“President Ramaphosa said this new enthusiasm was anchoring all efforts to confront the challenges facing South Africa‚ including the government’s initiatives to increase investor confidence and reduce policy and regulatory uncertainty‚” the Presidency said.

It said fresh consultations on the Mining Charter‚ recent measures to strengthen the cabinet‚ changes in the board and management of Eskom and an inquiry into state capture formed part of the government’s invitation to investors to come to South Africa.

“[The president] underlined the government’s determination to build a social compact of government‚ labour‚ business and civil society to advance investment‚ youth employment and community development.”

He also said job creation was the government’s most important priority. Failure to create such opportunities constituted the greatest risk to the country.

In November, Moody’s put South Africa’s long-term foreign and domestic currency debt BAA3 ratings (one notch above junk status) on a 90-day review for a downgrade.

Also in November, S&P Global followed ratings agency Fitch in downgrading South Africa’s credit rating to full junk status.