SA needs more gutsy decisions

POLICY: COUNTRY REQUIRES INVESTMENTS

- Iain Williamson

South Africa needs more policy certainty, reform, and "gutsy" decisions from a political perspective if it is to achieve the much-needed 4-5% growth required to begin elevating our economic prospects from current forecasts.

A healthier inflation prognosis and the prospect of deeper rate cuts have laid the foundations for a growth outlook nearing 1.7% next year.

Ratings downgrades and the dreaded grey listing kept these deep-pocketed investors on the sidelines until now, but some of the more prominent players are beginning to sharpen their pencils to work out when the best time will be to jump back into the South African market.

This is an opportunity that should not be missed. While SA remains on the grey list, this is subject to reassessment in February next year, while in a surprise move, rating agency S&P Global has raised the outlook on SA's rating from stable to positive.