SOUTH AFRICA HAS GIVEN RATING AGENCIES SOME POSITIVE NEWS, SAYS RAMAPHOSA
Deputy President Cyril Ramaphosa says South Africa has given the international credit ratings agencies some positive news in recent meetings as it fights to stave off a downgrade to junk status.
He said here Monday that South Africa had made progress on labour instability issues, one of the issues which the rating agencies take into account when assessing the country’s credit rating. South Africa is anxiously awaiting their verdicts following their next period review of the country.
The three main international rating agencies — Moody’s, Fitch and Standard and Poor’s (S and P) — are to reassess South Africa’s investment status within the next fortnight.
Ramaphosa was speaking on various issues after announcing that an amount of 3,500 Rand (about 250 US dollars) has been proposed as the country’s minimum monthly wage. Labour experts have welcomed the news.
The Chairman of the advisory panel on the determination of the new minimum wage, Professor Imraan Valodia of the University of the Witwatersrand here, says the proposed wage will address inequality and boost economic growth.
“It’s quite striking that something around 47 per cent of South Africans who do have work earn a wage below 3,500 Rand. We think as well from this evidence, policy can take us some way towards addressing the issues of inequality in South Africa.”
Source: NAM NEWS NETWORK.