September 7, 2017 / 1:58 PM / 10 months ago

South Africa's radical economic transformation policy could turn-off investors - Moody's

JOHANNESBURG, Sept 7 (Reuters) - Ratings firm Moody’s on Thursday warned that proposed plans by South Africa’s government to implement “radical economic transformation” could turn away investors and rising poverty may curb Treasury’s efforts to rein in fiscal deficits.

Moody’s said in a research report that plans for land redistribution, preferential procurement and other forms of affirmative actions could deter investors.

In June Moody’s downgraded South Africa’s credit rating to Baa3, the bottom of the investment grade table, with a negative outlook citing the abrupt sacking of Pravin Gordhan as finance minister in March. (Reporting by Mfuneko Toyana; Editing by James Macharia)

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