Investors eyeing policy paralysis, Eskom, Transnet & debt sustainability ahead of SA elections - Langelihle Malimela

As South Africa gears up for its national and provincial elections, which are set to take place sometime between May and August, global and local investors are closely monitoring their impact on the country’s policies. In an interview with Biznews, Langelihle Malimela, Head of Country Risk: Sub-Saharan Africa, highlighted concerns about policy paralysis, particularly in key areas such as addressing the electricity shortage and broader infrastructure problems. Malimela said there is tension between the ruling African National Congress (ANC)'s electoral threat and the imperative for fiscal prudence. There was a potential risk of election-related violence, but he expects that to be localised and limited to Northern Kwazulu-Natal. One of the other ANC challenges that Malemela pointed out is that younger voters, which the IEC indicated are registering to vote in the election, are more concerned about enormous electricity prices and the cost of living than the issue of the past. Should the ANC drop below the 50% threshold in the coming elections, Malimela suggested it could potentially form a coalition with parties like the Good Party of Patricia de Lille, who is already serving in President Cyril Ramaphosa’s Cabinet. Despite these challenges, he said, the ANC benefits from the lack of cohesion between opposition parties. According to Malimela, while these parties share a common goal of unseating the ANC, they have not articulated clear policy positions on key issues. Malimela warned that if the election results in the return of familiar faces and continued political involvement in key state-owned enterprises, resolving South Africa’s problems could take longer