Political fighting could sink SA into junk status
A macro-economist says South Africa might be able to avoid junk status if the current political tensions are kept in check.
Craig Pheiffer of ABSA, who was a panelist at a post-mini-budget discussion in Durban today - says the intent to meet the ratings agencies conditions, particularly from the Finance Minister and his team -is there.
He says politics could get in the way.
"One thing that we can do in a very short space of time, and probably have to do in a short space of time, is get all the in-fighting sorted out. If we can sort out the political in-fighting, then maybe we've got a chance," he said.
Investment analyst, Chris Gilmour, who was was also part of the panel, says economic growth holds the key to investor status.
"The only way I think we could really say we're not going to get it is if we demonstrate definitively that we're going to hit a much, much better growth rate over the next few years, and unfortunately, I think that is missing in this point in time," he said.