The government of national unity (GNU) formed by South Africa’s ANC and DA has led to a rally in local financial markets, but forming this unity government may prove to be the easy part. The necessary structural reforms likely to be pursued will probably test the stability of the GNU going forward. Elsewhere, Kenya’s budget unravelled this week after protests forced the government to scrap tax rises. A wider fiscal deficit appears inevitable, risking Kenya’s medium-term sovereign debt sustainability.
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