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FinMin Warns of Downgrades on a Third Wave; Vaccine Rollout to Take 17yrs at Current Rate

SOUTH AFRICA

LOCAL NEWS

  • FinMin Mboweni warns a third wave of Covid infections could lead to more credit ratings downgrades with a return to lockdowns possibly destabilising Govt's capacity to control the economy.
    • Says rating agencies are watching closely for follow-through of budget promises, but notes Easter holidays as a covid risk – RTRS*
  • Eskom implores citizens to use electricity sparingly as it struggles to meet demand.
    • Stage 2 load-shedding remains in effect to Saturday (has been running for 10 consecutive days), but may be extended further if conditions deteriorate
  • Expert says the third wave could come as early as April and that at SA's current vaccination rate it will take 17 years to reach herd immunity at 42m vaccinations.
    • Notes Easter religious gatherings as key super-spreaders
  • SA announced preferred bidders to boost emergency energy supply by 1845mw by August 2022 with projects amounting to R45bn under the Risk Mitigation IPP Programme and should reach financial close by end-July.
    • In a separate process and RFP for 2600mw in renewable sources fifth bidding window will be released at midnight tonight
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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