Gauteng puts the brakes on SA's economic improvement

The ratings upgrade and employment figures show that South Africa is making economic progress, but Gauteng is holding the country back.

- Ina Opperman

Busisiwe Mavuso, CEO of Business Leadership South Africa, said in her weekly newsletter that the upgrade of SA's rating outlook by S&P Global to positive is hopefully the first of many steps toward regaining the investment grade credit rating lost at the start of the Covid crisis.

"It is a testament to the success of government in regaining control over its finances during the last few years, rescuing us from the road to the crisis the Zuma administration put us on."

She said the primary budget surplus that government achieved in the past financial year was an important milestone. It was spending less than it was getting from taxes and other revenue, excluding debt service costs, for the first time in many years.

"While the medium-term budget policy statement showed that it will miss revenue targets for this year, it nevertheless painted a picture of a government that is in control.