South Africa’s weak growth will reduce ability to raise taxes, tackle drought: Moody’s

JOHANNESBURG – South Africa’s weak growth outlook will hobble its ability to raise tax revenues and take measures to tackle the effects of severe drought, ratings firm Moody’s said on Thursday.

These factors will make it challenging to maintain a sound fiscal position at a time when the government faces difficulties adhering to its spending ceiling, said Senior Vice President of Moody’s Kristin Lindow in a credit outlook report.

South Africa’s central bank cut its growth forecast to 0.9 percent from 1.5 percent in January.