Morocco outshines South Africa in credit race, European Rating Agency says

Morocco enjoys more favorable credit prospects than South Africa, according to European Rating Agency Scope Ratings. This conclusion is attributed to their above-potential economic growth, sounder fiscal position, and better prospects for reform. Scope Ratings assigned Morocco a BB+/Stable Outlook while South Africa received a BB/Stable Outlook.

Developing economies like Morocco and South Africa face a tough road ahead with several major hurdles to overcome, the report noted. The global economic climate is uncertain, throwing challenges their way in four key areas: social, economic, financial, and external.

Both nations need to prioritize restoring strong, sustainable, and inclusive economic growth to combat poverty and inequality. Additionally, keeping inflation in check and building up reserves to weather future financial storms are crucial. Finally, they need to bolster their external defenses to withstand potential economic shocks.

While both countries share similarities in their economies, industries, and resources, Morocco stands out with its stronger growth and stabilizing debt levels.

This positive trajectory reflects their commitment to reforms. South Africa, on the other hand, performs well in managing inflation and currency but struggles with infrastructure issues, governance concerns, and slow growth.

These issues are further hampered by political uncertainties surrounding upcoming elections. Navigating these challenges will be crucial for both countries to secure a more prosperous and stable future.