Optimism and Caution as South Africa’s Unity Government Takes Shape

Investors are hopeful that South Africa’s new unity government will implement stable economic policies to spur growth but remain cautious about the coalition’s ability to reconcile significant ideological differences as reported by Reuters. After failing to secure a parliamentary majority in last month’s national elections, the African National Congress, which has ruled since the end of apartheid in 1994, has formed an alliance with the pro-business Democratic Alliance and smaller parties.