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The Rand has come under pressure in recent weeks relating largely to the problems in financing Eskom. One of the ratings agencies who had a stable rating for South Africa’s long-term foreign currency debt has lowered South Africa’s rating. Fitch had South Africa rated as stable and now has taken a longer term view that is now negative. They say that the money we are paying towards Eskom is going to widen the government deficit to about 6,3% which is much higher than the government’s forecast for 2019/2020 of 4,5%. They raised, amongst other concerns, the actuarial liabilities of the Road Accident Fund, the liabilities which attorneys dispute because they don’t believe that that figure is correct. The biggest problem at the moment is our low GDP growth and they are expecting 0,8% growth in 2018 and 0,5% in 2019. We obviously need to grow at a better rate than that before our economy turns around.
Posted by Michael de Broglio on Friday 16-Aug-19
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Comments
Michelle D said:
on Friday 20-Sep-19 02:54 PM
Our country is in an iffy position and there is unfortunately no easy fix. I can appreciate for the first time politicians like Tito Mboweni not lying to us about how grim the next few years are going to be. Some of us will leave and the rest of us will just have to stick it out until things start getting better.
Zindy said:
on Monday 16-Sep-19 08:44 AM
It will take South Africa a long time to recover since there is ongoing corruption daily. Something has to change and drastically.
Tamaryn said:
on Friday 13-Sep-19 05:10 PM
I think it was Moody's that kept our ratings the same. Fitch always seems to be harder on our ratings, but we cant ignore our low GDP growth which is set to decrease by 0.3% over a year! These stats unfortunately do not promote investments in our country, or a positive outlook for those living in the country!
Bianca Taljaard said:
on Friday 13-Sep-19 12:57 PM
The government in South-Africa must stop being corrupt! Everything is just getting worse by the day
Victoria said:
on Tuesday 03-Sep-19 12:36 PM
Our economy is shocking at the moment, something major needs to happen to fix this.
Cornelie said:
on Tuesday 03-Sep-19 08:27 AM
Our economic is in a state everything is so expensive do not know where all is going to end but we as South Africans are running out of monthly commitments.
Sinead said:
on Monday 02-Sep-19 04:57 PM
The economic state of this country really is shocking to say the least. Something seriously needs to be done.
It will definitely take time to fix but when will we have positive feedback?
Prishani said:
on Monday 02-Sep-19 04:33 PM
I don't think government provides us with accurate figures when it comes to these stats, it’s a huge concern that we keep trying to keep certain entities afloat even when they aren't providing the services they suppose to!
Kathryn said:
on Monday 02-Sep-19 04:20 PM
The economic growth in South Africa is further inhibited by international investors and rating agencies that downgrade and rate the South African market negatively.
Claudia B said:
on Monday 02-Sep-19 08:44 AM
I would say I definitely do agree with Mathilda on this one 100%!
Daniella said:
on Thursday 29-Aug-19 09:22 AM
Things will never get better if corruption and mismanagement aren't taken seriously and fixed! There are moments that I thought we have no where to go but up from here but now I am feeling like corruption will never leave government which means we will never have any change.
Mathilda Du Preez said:
on Thursday 29-Aug-19 09:01 AM
I promise you even with the lowering in South Africa’s rating our government will give bailouts again. It is only South African government that will give a corrupt company such as Eskom an R59bn bailout and then they have no plan on how to restructure the overstaffed and mismanaged company and because of continuous bailouts it will cause taxes to rise.
Melissa said:
on Thursday 29-Aug-19 07:49 AM
It's going to take a very long time to make South Africa the way we want it to be. There's still a lot of work and effort that needs to be done in order for this country to reach growth. Eskom is causing more and more problems for the country
sandra said:
on Friday 23-Aug-19 05:30 PM
Everything seems to be getting worse and worse regarding out economic outlook. Eskom is in a deficit because of mismanagement and corruption, yet they charge an arm and a leg for electricity.
Alexis said:
on Friday 23-Aug-19 12:39 PM
Economic rating in SA will not be something to talk about right now. I am not surprised that we have now been put in such a position by Firtch ratings and yes, it will be some time before we ar e able to grow at a better rate, all depending on this country however.
Brenda Du Toit said:
on Friday 23-Aug-19 11:29 AM
Our government must stop the corruption and start thinking more of South Africans .I hope we can fix our South Africa.When is all of this going to end.
Brenda Du Toit said:
on Friday 23-Aug-19 11:29 AM
Our government must stop the corruption and start thinking more of South Africans .I hope we can fix our South Africa.When is all of this going to end.
Sarah said:
on Friday 23-Aug-19 09:00 AM
Our government has a lot to improve and grow still. It is going to take a lot of work to get the government where it now
Melissa van Tellingen said:
on Friday 23-Aug-19 08:56 AM
Yet another negative affect of our Government's actions on the citizens of South Africa. When is all of this going to end? When will SA get back on its feet again?
candice said:
on Wednesday 21-Aug-19 12:50 PM
We all wish that this country could become better but there is alot of work before our economy gets better. We need alot of changes to be done in this country
Angelique Jurgens said:
on Wednesday 21-Aug-19 12:50 PM
All these billion rand debt and bailouts is just going to cripple us! Our debt is just getting worse and worse. Eskom, SAA, SABC are all the cause of this. Our risk of a credit rating downgrade has just risen...
So much for the stable outlook hey? #NotSuprised #NotHopeful Yep #Negative
Brumilde Cronje said:
on Wednesday 21-Aug-19 07:05 AM
Its shocking to see the bad management that has affected us. My land property value also has gone up so high, i would never be able to sell my house for that amount, but they are trying to increase the other rates to get more money. While other people want to pay R100 a month for unlimited electricity, I hope we can fix our South Africa
Megan said:
on Monday 19-Aug-19 04:36 PM
This doesn't sound very positive at all for our country. We're all just living in hope at this point, wishing for a turn around... We can only wait and see.
Courtney said:
on Monday 19-Aug-19 02:55 PM
It's going take a very long time for any good changes! I really hope that things will get better and very soon.
Joyce said:
on Friday 16-Aug-19 04:58 PM
it sounds like trying to sort out Eskom problems is causing more problems on in SA finance
Ashleigh said:
on Friday 16-Aug-19 01:29 PM
Unfortunately there are going to have to be a lot of changes with government departments before there will be any hope for growth.
Clare said:
on Friday 16-Aug-19 01:18 PM
I believe that there is a lot of work and growth that still needs to be done before our economy will be better I also feel that people need to start pulling them selves towards them selves no Government institution works like they did before if its not Electricity problems its water problem.
Bianca N said:
on Friday 16-Aug-19 12:51 PM
Unfortunately there is a lot of work and growth that still needs to be done before our economy will be better.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
