
<p>LONDON, May 4 (Reuters)&nbsp;&#8211;&nbsp;Inflation in South Africa is set to rise to 8% this year, overshooting the central bank&#8217;s target amid the global impact of the Ukraine conflict and rising U.S. interest rates, credit rating agency Moody&#8217;s forecast in a report on Wednesday.</p>



<p>Moody&#8217;s said inflation was set to be higher than the South African Reserve Bank&#8217;s 3-6% target range this year, before falling in 2023 and 2024, with the central bank likely to continue to tighten monetary policy after it raised interest rates in March.<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VR4YO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a></p>



<p>South Africa&#8217;s finances were already under strain before the COVID-19 pandemic and worsened during&nbsp;successive waves of the virus, but have improved thanks to bumper prices for the country&#8217;s&nbsp;mineral&nbsp;commodity exports. But South Africa&#8217;s finance minister warned last month that the negative impact of high energy prices could outweigh this.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WK4WG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a></p>



<p>Moody&#8217;s cited risks to the country&#8217;s economy from&nbsp;highly indebted&nbsp;state-owned companies&nbsp;such as power utility Eskom, a rigid labour market and high social spending.</p>



<p>&#8220;The electricity sector poses the greatest risks to economic growth prospects, with generation capacity already insufficient to cover the economy&#8217;s needs,&#8221; Moody&#8217;s said in the report.</p>



<p>Power outages implemented by state-owned Eskom have constrained economic growth in Africa&#8217;s most industrialised country for more than a decade.</p>



<p>Moody&#8217;s upgraded South Africa&#8217;s outlook from &#8220;negative&#8221; to &#8220;stable&#8221; in April, keeping the government&#8217;s Ba2 rating and stating high commodity prices and fiscal consolidation would help to stabilise debt at around 80% of GDP in the&nbsp;medium term.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL3N2VZ3E2&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a></p>



<p>(Reporting by Rachel Savage. Editing by Jane Merriman)</p>


South African Economy As Inflation Rate Rises For First Time In 2017

Moody’s expects South Africa’s inflation to hit 8% in 2022￼

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<p>Moody’s say they expect the West African Economic and Monetary Union to grow by 5.4 per cent this year. They also note that the robust growth and the benefits of the economic union will shield banks from the pandemic. Mik Kabeya, Vice President and Senior Analyst at Moody’s joins CNBC Africa for more.</p>


Moody’s projects 5.4% growth for WAEMU region

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<p>There seems to be some optimism on the growth prospects for the South African economy. Last week Moody&#8217;s skipped its rating for South Africa leaving the country at sub investment grade, while the IMF has forecasted South Africa’s GDP growth at 3.1 per cent for this year. Inspite of all this, Bankserv africa insists there will be rapid economic growth in the country. Mike Schüssler, Chief Economist at Economists.co.za joins CNBC Africa for more.</p>


Rapid growth forecasted for South African economy

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<p>The rand is on a winning streak this morning, having broken past the R14 mark against the US dollar. The currency has rallied past a 16 month high, that&#8217;s after Moody&#8217;s decided to skip this morning and joining CNBC Africa for more is Alexander Forbes Chief Economist, Isaah Mhlanga and John Cairns, Currency Economist at Rand Merchant Bank.</p>


Rand dips below R14 against dollar

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<p>In the next couple of days, investor attention will turn to a scheduled review of South Africa&#8217;s sovereign credit by Moody&#8217;s on Friday. The ratings agency already has the country&#8217;s debt in &#8220;junk&#8221; status, and the question is whether it will cut that rating even further. With a negative outlook, there is the potential for a further downgrade. Annabel Bishop, Chief Economist at Investec joins CNBC Africa for more.</p>


SA has done enough to prevent a further sovereign downgrade

SA has done enough to prevent a further sovereign downgrade, economist says

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<p>Last week, Moody&#8217;s downgraded Botswana&#8217;s long-term local and foreign currency issuer ratings to A3 from A2 and changed the outlook to stable from negative. The ratings agency however, says that Botswana&#8217;s credit profile continues to be supported by robust fiscal metrics, in particular a low debt level and high debt affordability. Joining CNBC Africa to unpack the drivers of that downgrade and the outlook is Daniela Re Fraschini, an Analyst at Moody’s.</p>


Moody’s downgrades Botswana’s ratings to A3

Moody’s downgrades Botswana’s ratings to A3, with stable outlook

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<p>Ratings agency Moody’s says that the outlook on Mauritius’s sovereign remains negative. Even with its strengths, Mauritius&#8217;s credit profile reflects a high debt burden, and a slower than expected recovery in the tourism sector. Joining CNBC Africa to chart the way to a stable outlook for the country is David Rogovic, Vice President &#038; Lead Analyst for Mauritius at Moody’s.</p>


Moody’s: Outlook on Mauritius’s sovereign remains negative

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<p>As we anticipate the early results from the Republic of Benin&#8217;s April 11th Presidential elections later today, Moody&#8217;s says the credit challenges remain for the small West African country, and they include political and social tensions. Moody&#8217;s also notes that the country&#8217;s economy is relatively undiversified and is vulnerable to external shocks stemming from Nigeria. Aurelien Mali, Vice President and Sovereign Analyst at Moody’s joins CNBC Africa for more.</p>


Moody’s: Benin’s credit challenges remain

Moody’s: Benin’s credit challenges remain, include political & social tensions

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<p>Moody&#8217;s says it is maintaining its negative outlook for the Nigerian banking sector as it reflects the agency’s view that the loan quality of Nigerian banks will weaken in 2021. Moody’s also notes that the negative outlook captures the weakening capacity of the Nigerian government to support the banking sector when the need arises. Joining CNBC Africa for a focus on the state of Nigeria’s banking space is the Vice President and Head of Research at Chapel Hill Denham, Tajudeen Ibrahim.</p>


Moody’s maintains negative outlook for Nigerian banking system

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<p>Moody&#8217;s says African banks face environmental risk through their lending to environmentally sensitive sectors, but they are also vulnerable through outsized holdings of government bonds. Moody’s also notes that South African and Nigerian banks lead in disclosure and adoption of environmental policies. Antonello Aquino, Associate Director for Financial Institutions Group at Moody’s joins CNBC Africa for more.</p>


Moody’s: African banks face environmental risk threats

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<p>Moody&#8217;s has a negative outlook for the South African banking sector. The ratings agency says operating conditions remain challenging, with economic growth stubbornly low. Constantinos Kypreos, Senior Vice President at Moody’s joins CNBC Africa for more.</p>


Moody’s: Negative outlook for SA banks

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<p>Rating agency Moody&#8217;s has maintained a negative outlook for Kenya in a recent report. CNBC Africa spoke to Moody&#8217;s Vice President and Senior Analyst, David Rogovic, for more.</p>


Moody’s maintains negative outlook for Kenya

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<p>Moody&#8217;s Investors Service says Nigeria&#8217;s ultra-low treasury bills yields amid high inflation rate are credit negative for the banks because they will compress banks&#8217; net interest income as banks will be unable to reduce their cost of funding at the same pace. Peter Mushangwe, Banking Analyst at Moody’s joins CNBC Africa’s Esther Awoniyi for more.</p>


Moody’s: Nigeria’s ultra-low T-Bills yields will harm banks profitability

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<p>It may be a new year, but the challenges are still the same in many economies. The damage from the shock of COVID-19 has surely spilled over into 2021. According to ratings agency Moody’s, Sub-Saharan African sovereigns will grapple with slow recovery. To give more detail on this negative outlook, CNBC Africa spoke with by Kelvin Dalrymple, Vice President &#038; Senior Credit Officer at Moody&#8217;s.</p>


COVID-19 fallout weighs heavily on Sub-Saharan African sovereigns

COVID-19 fallout to weigh heavily on SSA sovereigns in 2021

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<p>Moody’s says Nigeria significant infrastructure deficit faces additional pressures from its rapidly growing population adding that the West African nation will need increased private and multilateral sector involvement to achieve its infrastructure goals. Kunal Govindia, Vice President, Project and Infrastructure Finance at Moody’s joins CNBC Africa for more.</p>


Moody’s: Nigeria’s rising population weighs on infrastructure

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<p>Kenya is among 65 countries in the world whose sovereign credit worthiness will maintain the negative status next year, according to the 2021 Moody’s Sovereign Outlook. David Rogovic, Senior Analyst at Moody&#8217;s joins CNBC Africa for more.</p>


Moody’s maintains a negative outlook for Kenya

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<p>According to a report by the Central Bank of Nigeria, the three important drivers of financial exclusion are lack of income, lack of education, and low trust in Financial Service Providers. So how can Nigeria navigate its way through these hurdles to achieve its financial inclusion targets? Professor Olayinka David-West, an Academic Director and a Professor of Information Systems at the Lagos Business School joins CNBC Africa’s Christy Cole for more.</p>


Moody's

Moody’s expects South Africa’s inflation to hit 8% in 2022

Moody’s projects 5.4% growth for WAEMU region

Rapid growth forecasted for South African economy

Rand dips below R14 against dollar

SA has done enough to prevent a further sovereign downgrade, economist says

Moody’s downgrades Botswana’s ratings to A3, with stable outlook

Moody’s: Outlook on Mauritius’s sovereign remains negative

Moody’s: Benin’s credit challenges remain, include political & social tensions

Moody’s maintains negative outlook for Nigerian banking system

Moody’s: African banks face environmental risk threats

Moody’s: Negative outlook for SA banks

Moody’s maintains negative outlook for Kenya

Moody’s: Nigeria’s ultra-low T-Bills yields will harm banks profitability

COVID-19 fallout to weigh heavily on SSA sovereigns in 2021

Moody’s: Nigeria’s rising population weighs on infrastructure

Moody’s maintains a negative outlook for Kenya

Olayinka David-West on how Nigeria can achieve its financial inclusion targets

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Moody's

Moody’s expects South Africa’s inflation to hit 8% in 2022￼

Moody’s projects 5.4% growth for WAEMU region

Rapid growth forecasted for South African economy

Rand dips below R14 against dollar

SA has done enough to prevent a further sovereign downgrade, economist says

Moody’s downgrades Botswana’s ratings to A3, with stable outlook

Moody’s: Outlook on Mauritius’s sovereign remains negative

Moody’s: Benin’s credit challenges remain, include political & social tensions

Moody’s maintains negative outlook for Nigerian banking system

Moody’s: African banks face environmental risk threats

Moody’s: Negative outlook for SA banks

Moody’s maintains negative outlook for Kenya

Moody’s: Nigeria’s ultra-low T-Bills yields will harm banks profitability

COVID-19 fallout to weigh heavily on SSA sovereigns in 2021

Moody’s: Nigeria’s rising population weighs on infrastructure

Moody’s maintains a negative outlook for Kenya

Olayinka David-West on how Nigeria can achieve its financial inclusion targets

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Moody’s expects South Africa’s inflation to hit 8% in 2022