South Africa's upcoming credit rating and interest rate decisions.
Fitch Ratings yesterday said it would not downgrade South Africa to 'junk' when it conducts its mid-year sovereign credit rating review. This is despite structural weaknesses in the economy, uncertainty over the management of power utility Eskom and possible disruptive strikes. The relatively doveish South African Reserve Bank (SARB) will monitor closely the effects of a strengthening dollar on the wider economy.
The Eskom board's plan to remove controversial chairman Zola Tsotsi could be complicated by his alleged links to President Jacob Zuma.
The murky nuclear 'deal' with Russia allows the state to appear to have a long-term energy plan, but raises governance concerns.
Frustration over Eskom's mismanagement could expedite legislation allowing greater state intervention, but this could worsen the problem.
The fiscal shock of a high public wage settlement could be cushioned by a 'contingency fund', but risks incentivising future high demands.
