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SOUTH AFRICA: Election Outcome Raises New Risks for Credit Profile: Fitch

SOUTH AFRICA
  • The result of South Africa’s election on 29 May means that the ANC will need to rely on the support of other large parties to govern, says Fitch Ratings. The various permutations of government could have very different implications for policy, with potentially significant effects for South Africa’s credit profile.
  • There is a risk that the weakened public support seen in the election could incentivise the ANC to adopt short-termist policies to secure a coalition or win back public support, and fiscal consolidation could suffer as a result, but Fitch think the fiscal impact will depend on the arrangements that the ANC makes to govern.
  • See the full report here.

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