LAND DEBATE CREATING POLICY UNCERTAINTY IN SOUTH AFRICA, SAYS MOODY’S

JOHANNESBURG– International rating agency Moody’s says the current land debate in South Africa is creating policy uncertainty in the country.

Addressing the media here Thursday, Moody’s Senior Credit Officer Lucie Villa said investors were more interested in how the land reform involving expropriation of land without compensation would be carried out.

Moody’s hosted its Inside Africa Summit here Thursday to discuss South Africa’s gradual economic recovery, prospects and challenges with the participation of some 150 senior investors, issuers and credit experts.

Moody’s is the only one of the big three rating agencies still holding South Africa’s credit status at above junk status.

“Until we get the details, it is very difficult to say, until the law is proposed there is policy uncertainty; in particular foreign investors would like to know if they are going to stick to their word ….. But without details IT is very difficult to say,” commented Villa.

Source: NAM NEWS NETWORK

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