Don’t downgrade us, Solidarity urges Moody’s
Johannesburg - Trade union Solidarity has asked rating agency Moody’s not to downgrade South Africa, but instead pressure the government to grow the country’s economy.
The rating agency’s representatives, who have placed South Africa on review for a downgrade, will be in the country this week for its annual review.
Flip Buys, who chairs the Solidarity Movement, which includes the union, believes the country still has tremendous potential for development, while a credit rating downgrade would pose profound implications for South Africa’s citizens.
“Definite steps that can be taken to restore investor confidence in South Africa do exist. However, government will have to be pressured to act decisively to make a direction change away from the road heading for the abyss the economy finds itself on at the moment,” Buys said.
The movement has proposed a “wish list” which it believes could help avoid a downgrade.
It includes appointing a president it believes can instill and cultivate foreign confidence, the government stopping its political “rivalry” with the EFF, and halting the implementation of black economic empowerment which it believes hampers economic growth.
It has also recommended that a minister be appointed to ensure good governance and accountability.