South Africa: Post-Financing Assessment-Press Release; and Staff Report

South Africa’s economy faces significant macroeconomic challenges: declining GDP per capita, rising debt, high unemployment, poverty, and inequality. Following national elections in May, the long-ruling African National Congress (ANC) lost its majority in parliament and formed a government of national unity (GNU) with the main opposition party Democratic Alliance and nine other parties. The GNU has indicated its intention to address these challenges, while ensuring social cohesion and good governance, which has been welcomed by the markets.