Ratings agency pronouncements are important in that they determine the financial standing of a country in the markets. When a country has unfavourable ratings, it will find it difficult to borrow without paying high-interest rates.
Conversely, favourable ratings indicate a much more stable credit proposition which will enable a borrower to access funding at concessionary rates.
South Africa has received funding to the tune of tens of billions of Rand from developed countries. This financial package has been to assist the country in reducing its reliance on fossil fuels for its energy. The country received this money immediately after the COP 26 conference last year.
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