SA riots will affect economic activity, said Moody’s
The current unrest in South Africa will greatly affect the country in terms of damage to property, dampening subdued confidence, and economic activity, according to a statement from rating agency Moody’s.
The country is currently subdued by some of the worst violence in decades after former President Jacob Zuma was arrested. Many businesses have been destroyed by arson and looting and at least 70 people have been killed. The riots only began to diminish on Thursday.
In an interview with Reuters, Moody’s senior credit analyst Aurelien Mali stated, “The recent escalation of violence in several regions represents a manifestation of South Africa’s exposure to social risks inherent in its credit profile, stemming from the high levels of income inequality and unemployment, particularly among the youth.”
She also added that this period of unrest would further complicate the progression of the structural reform agenda, restoration of the health and public finances, and longer-term growth prospects.
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