After months of waiting with bated breath, S&P Global has made its call on South Africa's country credit rating status. The verdict is good news for the people of South Africa. The question is whether or not the ANC government will use this respite to improve South Africa's economic fortunes in order to avoid a down-grade next time around.
So far there are signs that Treasury, under the leadership of Minister Gordhan is doing all the right things. However, Treasury cannot improve the economy on its own, other national government departments, provincial and local governments must play their part too.
If a recent report by the Auditor General of South Africa, on the financial affairs of municipalities for the 2014/15 period, is anything to go by, it appears that many municipalities have so far not played their part. Indeed, 72 municipalities received clean audits and while this is a higher number than the previous Auditor General's report for the period 2013/14, this is still a mere 26% of of all the municipalities (272). The rest of the municipalities (74%) received either unqualified or qualified reports. Based on this view alone, the road to a credit ratings upgrade for South Africa remains long and a lot of work still needs to be done, if we are to even achieve an unchanged credit rating status next time around.
Our Politicians must show political willingness to create effective government
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