Cape Town’s tourism and agriculture sectors most exposed by drought, says Moody’s
Moody’s has criticised the city of Cape Town over its handling of the water-supply crisis, saying it will have severe consequences for the city’s long-term finances.Daniel Mazibuko, a Moody’s associate lead analyst, said on Monday that the city’s initial response had been tardy, despite the lack of diversification of supply having been identified as a problem for a decade or more.Instead, the city had focused on demand management, despite a rapidly growing population.The crisis would have a range of financial effects on the city in the current financial year, despite a Day Zero event now being declared unlikely to happen in 2018, he said."Moody’s estimates that capital expenditure related to water and sanitation infrastructure could be between R8bn and R12.7bn over the next five years."The report is an update to the markets and does not constitute a rating action. It comes after a January report in which Moody’s calls the crisis "credit negative". The city is on review for a downgra...
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