After a reprieve from Moody’s Investors Service at the end of March, SA breathed a sigh of relief. President Cyril Ramaphosa had been given the benefit of the doubt — at least until after the elections. Analysts say Moody’s figured it was too soon to decide whether Ramaphosa would be able to take the hard decisions that are necessary to turn the economy around. SA has not grown more than 2% annually since 2013 and the economy is struggling to gain momentum despite political changes and Ramaphosa’s efforts to implement policy reforms to boost growth and lure investment. The consensus among analysts and institutions alike is that the elections on May 8 will give Ramaphosa room to make headway with structural reforms that encourage investment, which will bring about higher economic growth. The envisaged changes include dividing Eskom into three entities and creating an independent systems operator; rebalancing public finances towards investment and reforming state-owned enterprises (SO...

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