logo

Financial

Fitch sees South Africa missing revenue forecasts

PUBLISHED: Thu, 08 Jun 2017 12:43:05 GMT

JOHANNESBURG (Reuters) – South Africa is likely to miss revenue forecasts set out in a February budget while weakness in running of state-owned companies will be a risk to fiscal deficit targets, Fitch director Jan Friederich said on Thursday.

Friederich said business confidence had been dented by political infighting within the ruling African National Congress ahead of a party conference in December when a successor to President Jacob Zuma will be chosen.

“The ANC electoral conference in December 2017 will be key moment on the political scene,” Friederich said in a recorded video aired at a banking conference in Johannesburg.

“There is a high risk that the policy environment will remain volatile even after the ANC has elected new leaders.”

(Reporting by Mfuneko Toyana; Writing by Joe Brock; Editing by Tiisetso Motsoeneng)


Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.