The agency said that it projected economic growth to average 1.6percent this year and 2.1percent next year.
“Our forecast is based on further progress on the government’s reform agenda through the year, particularly negotiations over the mining charter, with a view to a final agreement by the end of the year, and further progress in improving state-owned-enterprises governance and overall public finance governance,” Moody’s said.
The Department of Mineral Resources and the mining industry are set to lock horns next month at the mining summit over the draft charter. The Minerals Council South Africa has already laid down the marker for the department, expressing its unhappiness over several clauses in the charter.
The council said it was surprised by some clauses in the charter that were not agreed to by the Charter Task Team.