S&P downgrades South Africa's outlook as load-shedding weighs

S&P Global late Wednesday downgraded its outlook on South Africa to “stable” from “positive”, citing infrastructure constraints and a severe power crisis.

South Africa's economy contracted more than expected in the last quarter of 2022, as an escalation in rolling power cuts contributed to most sectors from agriculture to mining shrinking, data showed this week.

The ratings agency said economic growth in South Africa was facing increasing pressure due to infrastructure constraints, particularly from severe electricity shortages.

S&P affirmed South Africa's '“BB-/B” foreign currency sovereign credit ratings, but warned it could lower them if the government's ongoing reforms to address the power crisis do not progress as planned.