Political risks piling up, rand on the rocks

Resurfacing political risks in some parts of Sub-Saharan Africa are another threat to recoveries that are already facing multiple headwinds, while at the same time raising the pressure on several governments to provide more fiscal support. Otherwise, while the South African rand held up relatively well in the first part of this year, the currency has already weakened by over 2% against the dollar since the start of July and we think that further falls lie in store.