Soundbite by Wendy Alexander MP
• South Africa’s credit rating has been upgraded to BB by S&P for the first time since August 2005.
• DA involvement in budget has signalled growth and jobs.
• We will continue to fight to keep our debt in check and to make the necessary growth reforms.
The DA welcomes the upgrade of South Africa’s credit rating to BB by S&P for the first time since August 2005. This is a clear signal that since the DA has been involved in managing the budget, we’re turning the fiscal corner after almost two decades of ANC damage.
The positive outlook is further confirmation that South Africa under the GNU has new fiscal credibility. It’s becoming clear that markets expect the DA will continue to advocate for keeping our debt in check, as well as tracking on the necessary growth reforms.
We must ensure that accelerated reforms in network industries such as logistics and energy aren’t snarled up in bureaucracy and red tape.
Notwithstanding external validation, now is not the time to be complacent. South Africa is still two upgrades away from being rated as investment grade by S&P, and we must maintain the momentum to ensure the other big three credit ratings agencies follow suit.
An investment grade rating could over time reduce the cost of servicing our debt, which currently takes up almost 22 cents of every rand we collect.
The breathing room will allow us to spend more on infrastructure. Infrastructure improvement will, in turn, lead to an environment which facilities more economic growth.
We will continue to use our role in government to fight for growth-enhancing reforms and responsible budgets, not spending on cadres and broken procurement.