The positive sentiment towards the government of national unity (GNU) continued this week, with US credit ratings agency S&P Global revising South Africa’s outlook from stable to positive.
The surprise nod from the agency indicates South Africa is a step away from an upgrade.
Its positive outlook stems from optimism around the potential for growth and for government debt to stabilise, amid accelerated reforms committed to by the administration.
The rand strengthened on the news this week, with the revision of South Africa’s outlook marking a vote of confidence in the government’s ability to shift the needle on reforms aimed at boosting economic growth and investment.
Political stability is at the heart of it, despite the incessant bickering between the ANC and the DA in particular.
At the same time, both the DA and the ANC appear to be tracking up in political support since the formation of the GNU. The Social Research Foundation and the South African Institute of Race Relations have both conducted polls indicating an increase in support for the two parties.
These are positive tidings for South Africa, which has been dogged by negativity and lost opportunity for more than a decade.
What is worrying, however, is that the GNU has dragged its feet in unveiling its minimum programme; it was meant to be finalised ahead of the medium-term budget policy statement last month but has been delayed until January.
What is also frustrating is that while the parties bicker over laws such as the Basic Education Laws Amendment Act and the National Health Insurance Act, precious time for urgent reform is ticking away.
At the centre of all this administration’s endeavours should be ways to grow the economy.
Should it fail, the beams of light beginning to shine through will be dimmed once more.
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