Yesterday Moody’s Investors Service has said that in SA the investment intentions of both foreigners and the private sector have been affected by the political risk, though it remains low.

Moody’s senior vice-president Kristin Lindow has concerned that the some of the populist demands from some quarters of the African National Congress (ANC) which could become policy and is the rising concerns. He told this in a conference organised by the rating agency.

She added that the discussion were based on nationalization which were disturbing and were not being put down firmly as they would have been in the past. They knew that the government is encouraging people to speak their minds; however there is some trouble to investment intentions by both foreigners and the private sector in SA.

She pointed foreign direct investment rather than foreign buying of local shares and bonds because the foreign direct investment has continued to generate capital inflows into SA this year.

Till now no threat has been marked by Moody’s regarding the stable outlook for SA’s A3 sovereign and domestic currency credit ratings.