South Africa takes the global stage as credit upgrade confirms reform momentum - BLSA

THIS IS a big week for South Africa, as we host the leaders of many of the world’s biggest economies at the G20 meetings, while business leaders from across the world meet at the B20 Summit. This comes hot on the heels of an upgrade in our sovereign credit rating by S&P Global from BBto BB, which maintains a positive outlook. These provide both the opportunity and the evidence to demonstrate to the world that South Africa is back in business.

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We have a government that is starting to regain control of the nation’s finances and turning the trajectory toward sustainable, growth-supporting fiscal management. The medium-term budget policy statement last week showed continued fiscal discipline, with Treasury on track to deliver another primary surplus despite weak growth.

We have a financial system that is appropriately vigilant about abuse, putting us back in good standing with the Financial Action Task Force. Our exit from the FATF grey list in October was recognition of the work done to strengthen our anti-money laundering and counter-terrorism financing frameworks. These are not just bureaucratic achievements ~ they matter for our ability to attract investment and participate fully in global financial markets.

And this week, we can engage with the world about the great work that has been done to contribute to policy advances under our chairmanship of the G20. While the G20 takes place amid higher geopolitical tensions than we would have liked, South African hosts have managed this as well as could be expected. The Trump administration has said it will not send a delegation, though other US political leaders will attend. This is unfortunate, particularly as the US will be chairing the G20 next year. But it also provides a stark illustration to the political leaders who will be attending of why we need to act to protect the rules-based trading system that is key to international prosperity. Those nations assembled will have the opportunity to back solutions to minimise the harm from tariffs that have been imposed on much of the world.