SOUTH Africa may struggle to make much more progress on resolving the country’s longstanding challenges if a coalition government emerges after elections this month, Moody’s Investors Service cautioned.
“These include stimulating years of sluggish economic growth, curbing chronic power shortages and reducing very high unemployment,” said Aurelien Mali, vice president – senior credit officer at Moody’s. “The current government has made incremental progress on these issues.”
Opinion polls suggest the ruling African National Congress could lose its national majority in the May 29 elections for the first time since taking power in 1994. While it’s expected to remain the largest party, dropping under 50% of the vote will force it to form a coalition government. – © 2024 Bloomberg