Moody's: Strike could damage SA's reputation

By Staff Writer
Economists with Moody's Investor Services have warned that constant strike action in South Africa could severely tarnish country's reputation, especially after hosting the most economically successful FIFA World Cup in history.

Moody's Analytics, , a subsidiary of Moody's Investors Service, said that due to the labour unrest, which seems to be getting worse, the damage done to South Africa's reputation as an investment destitution could be lasting.
The credit ratings agency urged South Africa to keep business conditions stable in order to boost the country's global profile.

Civil servants recently went on a three-week strike demanding better wages and a higher housing allowance. The workers were asking for an 8.6% increase and a R1000 housing allowance. The strike has, however, been suspended and government sticking with its 7.5% wage increase offer along with R800 housing allowance.

In the biggest strike the country has seen since 2007, police had to take action with rubber bullets and water cannons as strikers turned violent, threatening those who were working and ignoring ailing patients. It's expected that the strike cost the economy around R1billion each day.

The strike had no impact on the South African bond, stock and currency markets, though and the Rand hit a 30-month high against the dollar on Monday, September 13 when the rand traded at 7.1550 to the dollar at 07:51.

Recent Articles

Featured When to trade in your old car for a new one

You may have noticed that your car isn’t running as smoothly as it used to. This is particularly concerning if you’re hoping to sell it at a reasonable price, and buy yourself a modern alternative.

3 facts to consider when cancelling your contract

If you’ve ever had a relationship end in a bit of a mess, you’ll know that some people are more difficult to break up with than others. The pain, the push back, the back and forth – it can be a difficult process.

How long does debt reflect on your credit score?

If you’ve ever had debt that you didn’t manage well, you may have wondered how long the debt would remain, or be retained, on your credit score. This is known as a “retention period” and it is governed by the law.

Deals

Full Body Massage at Dembalicious Spa

Price: R99
When: Mondays to Sundays
Where: Johannesburg

Two-Course Asian Dining for Two

Price: R269
When: Mondays to Sundays
Where: Cape Town

One-Hour Yacht Cruise with Waterfront Charters

Price: R99
When: Mondays to Sundays
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions