South Africa IRP, Transnet cash, World Bank optimism

South Africa presented its draft energy plan, which brought bad news to those concerned about loadshedding and the commitment to reducing greenhouse gas emissions. Meanwhile, the country’s finance minister commented that the government is considering a cash injection to the troubled state-owned logistics firm, Transnet. Alongside the likelihood that fiscal policy is loosened as the election approaches, such a move would reinforce our view that South Africa will struggle to place its public finances on a sustainable footing. Finally, the World Bank struck an optimistic tone on growth in Sub-Saharan Africa growth this year, but we are less upbeat on Angola and Nigeria’s prospects in particular.