Markets calm but outlook takes hit

Financial markets’ response to SA’s week of violent unrest has been surprisingly muted, with analysts suggesting hardened emerging-market investors aren’t that concerned as long as there is no threat to President Cyril Ramaphosa’s leadership and that SA doesn’t resort to authoritarian tactics to crush the violence.

But rating agencies have warned that the riots pose risks to SA’s economic recovery from the Covid pandemic and could complicate efforts to fix public finances and implement reforms…