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 Request your credit report from the right bureau

With so many different credit bureaus in South Africa, it may be difficult to decide from which one to request your credit report. We have a look at what you should be aware of when selecting a credit bureau.

Applying for a home loan? Consider the repo rate

When you apply for a home loan, one of your top priorities should be to secure a low interest rate. In order to achieve this, you need to be familiar with the repo rate. We find out more about this.

Effective financial planning as a single parent

As a single mom or dad, it can be challenging to keep up with the ever-increasing expenses of raising a child. We have a look at the importance of setting up a budget as a single parent.

How your credit score impacts your insurance – and vice versa

Since insurance is paid in advance, it may seem unrelated to your credit score. However, these two are in fact linked to one another. We find out why insurers look at your credit score.

Deals

Get a FREE flight ticket with Hotel Sky

Price: From R5,200
When: Until 31 January 2022
Where: Johannesburg and Cape Town

Voucher for 2 special at Bakwena Day Spa

Price: From R1,798
When: Until 31 January 2022
Where: Centurion, Hartbeespoort and Stellenbosch

Spier Hotel Summer Special

Price: Available on request
When: Until 31 March 2022
Where: Stellenbosch


Latest Guide

Guide to debt rehabilitation solutions