South Africa has seen an increase in demand for government bonds since Moody’s investment grade rating of the country last month.
This is according to deputy president David Mabuza, who said that the increase reflected greater confidence from international and local investors in the country’s economy.
“Increased demand for SA government bonds is good news as it translates into lower interest rates for South Africa, both in the public and private sector,” he said.
However more could and should be done by government to restore investor confidence in the country. He said that as Africa’s most industrialised economy, South Africa held huge potential to stimulate economic growth through more foreign direct investment.
“We are now working to ensure that this renewed optimism leads to real and inclusive economic growth and job creation for the country,” he added. “The positive change in investor sentiment and the stable economic outlook will support and underpin the president’s call for US$100 billion in investment over the next five years.”
