In trying to score Finance Minister Tito Mboweni’s much anticipated Supplementary Budget out of 10, we broke the answer up into three components: Firstly, the current fiscal situation, secondly, the quality of the plan as outlined in the document and thirdly the executability of the plan. South Africa’s finances are in pretty dire shape. The…
In a not unexpected move, Moody’s downgraded South Africa’s sovereign credit rating to one notch below investment grade at Ba1. They also kept South Africa’s outlook as negative, indicating the risk of a further downgrade within the next eighteen months. As a result of this move, South Africa will no longer form part of the…
By raising South Africa’s VAT rate from 14% to 15%, the South African government indicated a willingness to take difficult (and unpopular) decisions in order to stabilise the fiscus. Coupled with the recent change in the President, this Budget should be enough to keep Moody’s on hold when they release their South Africa sovereign review…
