Fitch: Political uncertainty and policy challenges remain significant in South Africa

"Political uncertainty will persist in South Africa following the election of Cyril Ramaphosa as leader of the African National Congress," Fitch Ratings wrote in a recent report.

Key quotes

Political uncertainty and policy challenges remain significant.

The narrow margin of victory suggests support within the ANC for Ramaphosa's policies could remain fragile.

An early indicator of the political and policy consequences may include whether Ramaphosa seeks to recall Zuma as national president and whether he would have the necessary support within the ANC. 

We affirmed South Africa's 'BB+'/Stable sovereign rating in November.

Whether fiscal measures, stronger GDP growth and improvements in standards of governance that may emerge in the wake of the ANC's national conference can mitigate those trends remains a key element of our sovereign credit assessment.