Stable governance yielding positive markets response: Ramaphosa – SABC News


President Cyril Ramaphosa says structural reforms are taking hold, while stable governance is yielding a positive response from markets. He was delivering the opening address at the virtual SA Tomorrow Investor Conference hosted by the Johannesburg Stock Exchange (JSE).

The conference serves as a platform for global investors to hear about current policy developments, and market fundamentals that can help to inform investment decisions.

Speakers highlighted the country’s economic resilience, which has been supported by growth enhancing reforms, fiscal prudence and data driven monetary policy decisions.

Ramaphosa says, “Through private public partnership, we are unlocking finance for infrastructure including mass public works. We are expanding and broadening the areas of our reform process to drive transformation, build critical skills and to expand to expand opportunities for all businesses.”

He adds, “We are strengthening the regulatory environment and improving the ease of doing business, our financial sector regime remains the world’s most robust.”

RATING AGENCIES

Reserve Bank Governor Lesetja Kganyago says rating agencies lowered the country’s creditworthiness to sub-investment levels based on the expectations that debt would exceed 90% of Gross Domestic Product (GDP) by 2025.

He argues that given that the assumptions have not prevailed, there is room to review the country’s credit rating.

Kganyago says, “So, we need a different conversation with the rating agencies. This is where you were in 2017 and 2020. You said this was the trajectory and this is where we are, and so, you are having this combination now that we are having. Prudent fiscal and monetary policy, a structural reform policy that is under way that counts for something.”

JSE CEO Leila Fourie pointed out that there has been growing interest in investing in the stock exchange over the past year amid stable macroeconomic foundations.

Fourie says, “Since the formation of the GNU (Government of National Unity) last year the FTSE JSE top 40 has climbed roughly 55% in US dollar terms outpacing the MSCI emerging markets index which is up 28% , MSCIA world which is up 27% and even the Nasdaq 100 which is up 41% and the JSE’s own share price has risen more than 60% in US dollars.”



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