...DUBAI (S&P Global Ratings) June 18, 2024--We expect South Africa's new government of national unity will not cause a significant policy shift. On June 14, the ruling party over the past three decades, the African National Council (ANC), announced a broad coalition with the Democratic Alliance (DA), the Inkatha Freedom Party (IFP), and the Patriotic Alliance (PA), after securing 40.2% of the vote. The new coalition's nine-point agenda aims to prioritize structural reforms to address basic infrastructure and service delivery shortfalls and weak investments, while gradually narrowing fiscal deficits. The election outcome is broadly favorable for the economic and fiscal outlook, compared with the alternatives. Nevertheless, we expect the government will face an uphill battle to revive growth and maintain fiscal discipline, while navigating the new realities of coalition politics. Despite the reasonably constructive outcome, significant ideological differences between the ANC and the DA on issues...
