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ANC statement on Moody's decision to downgrade SA to Baa3

10 June 2017

The African National Congress has noted with concern the decision of credit rating agency Moody's to downgrade South Africa's foreign and local currency debt announced yesterday, 9 June 2017. Amongst the reasons cited for the decision is the perceived weakening of our country's institutions, sluggish economic growth, slow implementation of structural reforms and policy uncertainty.

The ANC calls on government, the private sector and organized labour to use this latest downgrade as a catalyst for greater urgency in working to alter our economic trajectory and boost confidence in our economy. In particular, we call on the social partners to work together to expand private sector investment in the local economy, continue to maintain the stable labour relations environment, remain focused on government's program of fiscal consolidation and strengthen governance in the State Owned Companies and state institutions in general.

For its part, the ANC remains committed to transparency and inclusivity in the process of assessing and, if necessary, reviewing policy towards the organisation's 4th National Policy Conference and 54th National Conference scheduled for June and December 2017 respectively.

We have confidence that where any uncertainty or ambiguities still remain in terms of the ANC's policy framework, these will be settled decisively by these important gatherings of our people. We are confident also that the outcomes of these gatherings will result in an improved investment climate and should trigger a positive review in the coming months.

Issued by the African National Congress

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