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5 Key Risk Factors Driving Investor Decisions In South Africa In 2016

5 Key Risk Factors Driving Investor Decisions In South Africa In 2016

image: businessinsider.com
image: businessinsider.com

Risk 1: Stagnating Economy

South Africa’s bonds are headed for a ‘junk’ rating status and there is nothing that can stop that now. Lack of reliability by different government factions within the ruling government is sending mixed messages to global rating agencies and soon they will have no choice but to downgrade the country.

“The lack of details around specific cost-cutting mechanisms and populist pressures against significant restructuring of state-owned enterprises means that the downgrade risk will persist,” George Nicholls, senior managing director of Control Risks Southern Africa, told a media briefing on Monday, IOL reported.