Negative outlook for the economy in 2020

Moody's, the only ratings agency to have South Africa at investment grade, could cut the country to junk status.

JOHANNESBURG - The economic outlook for 2020 isn't a hopeful one.

It's been forecast that the economy will grow at less than one percent this year.

READ: Ramaphosa promises investment drive to tackle ailing economy

Moody's, the only ratings agency to have South Africa at investment grade, could cut the country to junk status.

Even the Finance Minister doesn't seem to be positive, taking to Twitter to express his frustration at what he calls structural economic reforms inertia.

The country is looking to President Cyril Ramaphosa, who is set to deliver the opening address at the second Business Economic Indaba later this week.

The indaba will see business and government discuss issues familiar to both groups, but which the government under Cyril Ramaphosa has thus far, been slow to tackle.

READ: ANC alliance partners oppose Mboweni's economic reforms

Business Unity South Africa says the President must put party politics aside.

Cas Coovadis, the acting CEO of Busa, said, "there is a level of frustration that there is no movement on this, we recognise all the politics, we recognise all the issues the president has to deal with but our call is for the president to rise above that"

Business and consumer confidence have been in the doldrums in the last few years.

While investment into the economy from both business and government has been virtually non-existent. I

And, the country's financial position has worsened as it struggles to collect enough taxes while continuing to borrow in order to pay salaries and bail out state-owned entities.

Coovadia says all those affected, including business, will have to make compromises to attract investment and grow Africa's most industrialised economy. 

Source
eNCA