Ramaphosa tells Moody's land reform would not affect economic growth

Ramaphosa tells Moody's land reform would not affect economic growth

- The president recently met with Moody's, a financial services provider in South Africa, to discuss the future of the country

- Ramaphosa talked about the government's initiatives to better the lives of South Africans, which largely includes job creation

- During the discussion, he also assured the company that land reform would not negatively impact the economy

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Since the ANC announced it would implement the land expropriation without compensation, many have feared that the South African economy would go down the same path as that of Zimbabwe.

Some experts argued it was impossible to give away land for free and at the same time grow the economy.

However, while addressing Moody's Investors Service on Wednesday, President Cyril Ramaphosa said the land reform would not negatively impact the country's economy.

Ramaphosa met with the financial services company at Tuynhuys in Cape Town to discuss various plans aiming to create jobs and grow the economy.

eNCA reported the head of state assured Moody's the project would be conducted within a clear legal framework.

According to his office' statement, Ramaphosa pointed out the government's "determination to build a social compact of government, labour, business and civil society to advance investment, youth employment and community development".

Briefly.co.za gathered the statement added land reform would be implemented in a way that would not threaten agricultural production and food securing.

"President Ramaphosa said job creation was government’s most important priority and failure to create such opportunities constituted the greatest risk to the country. Moody’s is due to announce its latest outlook on South Africa on 23 March 2018.", the statement read.

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According to his office, Ramaphosa said the enthusiasm currently in South Africa was "anchoring" efforts to take challenges head on.

The presidency said Ramaphosa would aim to increase investor confidence and reducing policy and regulatory uncertainty.

According to his office, various actions had been taken to improve investors' confidence, including consultations on the Mining Charter, an improved Cabinet and an inquiry into state capture, just to name a few.

It was the first time Ramaphosa met with the agency, which provides credit ratings, research and risk analysis, since his appointment as the head of state.

Moody's said last month that it was monitoring develpoments within the country since Jacob Zuma's removal.

"The key point from a credit perspective will be the new leadership’s response to the country’s economic and fiscal challenges and progress in implementing reforms addressing them," Zuzana Brixiova, Moody’s.VP said.

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Source: Briefly.co.za

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