South Africa’s fiscal consolidation is largely on track, albeit at a slower pace and also hampered by uncertainty over structural reforms, ratings agency Moody’s said on Thursday. 

“Key fiscal risks to the budget delivery and hence to South Africa’s credit quality include lower than projected growth, emerging wage pressures, and rapidly rising contingent liabilities related to financially weakened state-owned enterprises,” Zuzana Brixiova, VP-Senior Analyst, Moody’s said in a statement.

Brixiova also said spending pressures were also likely to rise in the run-up t the 2019 elections.

(Reporting by Tiisetso Motsoeneng; Editing by James Macharia)