The Select Committee on Appropriations noted with appreciation the recent decision by Moody’s Investors Service (or Moody’s) to keep South Africa’s credit ratings unchanged.

For this reason, the Committee joins the rest of the country in congratulating Team South Africa for a very successful oversees road show to promote the country’s investment opportunities. Team South Africa was led by the Minister of Finance and included stakeholders from organised labour, business and civil society.

Moody’s decision should be seen as a clear signal that the country’s economic growth is nearing a turning point for the better, while the 2016/17 budget and medium term fiscal plans projected potential to stabilise government debt levels.

The recent budget focused on fiscal consolidation, debt stabilising and efficient spending plans.

It is hoped that the decision by Moody’s will serve as a positive sentiment about the country’s macro-economic and fiscal policy – and thus boost investors’ confidence in the country’s economy.

The National Treasury should, however, consider the concerns raised and further continue to demonstrate that the government is committed to translating the fiscal plans into concrete actions that will ensure South Africa remains an investment-grade country.

The positive sentiments were also echoed during the recent International Monetary Fund’s (IMF’s) visit to South Africa to conduct the 2016 Article IV Consultation discussions.

The IMF mission was quoted as saying the government is making good progress in addressing infrastructure bottlenecks, especially in the electricity sector, and had committed itself to state-owned enterprises reform, and is strengthening public procurement.

The visit by the IMF further indicated that a comprehensive package of structural reforms remained the preferable option to create jobs and reduce inequality.

Issued by Parliamentary Communication Services on behalf of the Chairperson of the Select Committee on Appropriations, Mr Seiso Mohai