Although the USD has not retreated much off its recent highs, the ZAR has staged a solid recovery through Asian
trade. One of the reasons is the good news that S&P Ratings has raised SA’s credit rating outlook to positive from
stable. S&P’s comments have painted a very clear picture for the GNU: it will reward prudent policy-making and
governance with credit rating upgrades. Although much work is needed to justify the improved outlook, let alone
an actual credit rating upgrade, S&P has shown the GNU the path towards economic salvation. It includes some
hefty reforms, a focus on investment, the inclusion of the private sector, stronger GDP growth, a broadening of the
tax base, and more efficient operations.