However, apart from the fact that these investors would require a higher return on South African assets than recent historical norms, their investments would be more short-term in nature, most likely resulting in a higher volatility of market prices. This, in turn, would increase the climate of uncertainty facing domestic businesses, with negative consequences for fixed investment, job creation, and therefore poverty and inequality.
In conclusion, let me say that a sovereign rating is not a policy goal per se. Rather, it is a reflection of a broad range of economic, social, and political factors that constitute the creditworthiness of a country. Key among these factors is the strength of our institutions, including the Chapter 9 institutions, the judiciary, and the South African Reserve Bank.