SA's removal from grey list a step forward, but governance challenges persist - Raymond Parsons

South Africa has officially been removed from the Financial Action Task Force (FATF) grey list after 32 months of implementing reforms to address 22 criteria related to money laundering, terror financing, and systemic governance issues. 

Professor Raymond Parsons of North West University's School of Business and Governance said the move was a confidence boost for investors and signals the country’s progress in meeting international financial standards.

"This is a good news story; it is a confidence-building step, especially at this point when we're anxious to get this economy moving and we want to normalise our relations with the outside world to help us do that.

"We must see this latest development on the grey list as just one stepping stone which we need to mobilise in order to create that better economic climate that we all want to see in South Africa.

"We are at least back in the game, and now we've got to up our game."

Parsons noted that while it improves global financing accessibility and investor sentiment, it does not yet signify a complete turnaround in governance. 

He emphasised the importance of maintaining momentum to implement reforms fully and address other pressing challenges, including energy, logistics, and crime.

To listen to Professor Raymond Parsons in conversation with CapeTalk's Lester Kiewit, click the audio below: