Publications
Partners
Cape Town – Finance Minister Pravin Gordhan praised the City of Johannesburg on Sunday after Fitch Ratings upgraded its national long-term rating.
Fitch also upgraded its national senior unsecured ratings on outstanding bonds and affirmed the City of Johannesburg’s long-term local currency rating with the outlook on stable.
The ratings agency cited Johannesburg's fiscal strength and sustainable debt levels as key drivers for the ratings action, the Treasury said in a statement.
Gordhan said South Africa needs cities that are financially sustainable and able to invest in infrastructure that improves the lives or our people.
“Prudent management of city budgets should be the focus of our cities because the success or failure of local government will determine whether millions of poor and marginalised people live a dignified life in decent conditions,” the Treasury said.
“Cities are engines of economic growth.”
“If South Africa is to reach higher levels of growth, it will depend on the performance of our city governments.
“It will be through cities that South Africa can achieve 'inclusive growth', the kind that reduces economic inequality and creates productive economic opportunities for the poor and the vulnerable,” it said.
