South Africa may struggle to make much more progress on resolving the country\u2019s longstanding challenges if a coalition government emerges after elections this month, Moody\u2019s Investors Service cautioned.<\/p>\n\n\n\n
\u201cThese include stimulating years of sluggish economic growth, curbing chronic power shortages and reducing very high unemployment,\u201d said Aurelien Mali, vice president – senior credit officer at Moody\u2019s. \u201cThe current government has made incremental progress on these issues.\u201d<\/p>\n\n\n\n
Opinion polls suggest the ruling African National Congress could lose its national majority in the May 29 elections for the first time since taking power in 1994. While it\u2019s expected to remain the largest party, dropping under 50% of the vote will force it to form a coalition government.<\/p>\n\n\n\n
\u201cThe strength or otherwise of the new administration\u2019s mandate – and any concessions to minor parties needed to secure support – could make the already complicated management of fiscal, economic and social policy objectives even more difficult,\u201d Mali said.<\/p>\n\n\n\n