Cape Town - The Democratic Alliance has taken a swipe at President Jacob Zuma’s leadership on the economy following Fitch Ratings review on the country.
The ratings agency on Friday dropped South Africa's outlook to negative, while affirming the country’s rating, which is one notch above junk status.
"The decision by Fitch Ratings to affirm its sovereign credit rating at “BBB-” and revise down its outlook to negative is clear evidence that the politics is killing the economics in South Africa," said DA shadow minister of finance David Maynier.
Despite noting that the economy may have started recovering, Fitch identified political risk as one the key reasons for the decision taken.
It pointed out that “infighting within the ANC” and “ANC factional battles” had the effect of:
- distracting policymakers and leading to mixed messages, which undermined investor confidence and economic growth; and
- undermining efforts to improve governance and the streamlining of state-owned enterprises.
"The fact is that the decision by Fitch to revise its sovereign credit rating to BBB- (Negative Outlook) is a massive indictment of President Jacob Zuma’s leadership on the economy in South Africa," charged Maynier.
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