Towards the end of August 2005 Fitch, similarly, revised South Africa’s BBB rating to BBB+. These ratings place South Africa at the top of the lower investment grade band and are an endorsement of the country’s economic fundamentals and policies. These upgrades have contributed to the increasingly narrow margins paid on the country’s foreign borrowing. The Bank will continue to encourage foreign direct investment.
The advantages of FDI should not primarily be seen in terms of foreign exchange flows but rather for the benefits of technology and skills transfer, employment creation and enhanced international linkages. We must continue to ensure an efficient payments and settlement system. Without this you cannot have an efficiently functioning economy.