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South Africa’s attempts to end corruption should save the country from another economic downgrade, central bank chief Lesetja Kganyago has told Bloomberg TV.
“Without pre-empting what the ratings agencies would say, South Africa is in a much better space now than where it was when previous ratings actions took place,” he added during the interview at the World Economic Forum in Davos, Switzerland. “We have got a good case to make.”
In November, global ratings agency S&P downgraded South Africa’s currency debt to “junk” status, causing the rand to fall in value.
But there is hope in South Africa that the economy could redeem itself.
The rand is at its highest level since 2015 following the election of Deputy President Cyril Ramaphosa as leader of the governing African National Congress.
His appointment has led commentators to suggest that South African President Jacob Zuma might be preparing to stand aside.
The president is currently engulfed in a corruption scandal that has hit South Africa’s economy hard and pushed the country into recession
“Corruption and misrule will soon be history,” Mr Kganyago told Bloomberg. “You’ve actually seen a reassertion by the parliament of the Republic of South Africa to hold the executive to account, to hold the public servants to account. Parliament is finally playing the role that it’s supposed to be playing.”
