Politics will shape economic growth

ED RICHARDSON INTERNAL SQUABBLES and jockeying for leadership in the ANC hold the keys to South Africa’s economic growth in 2007, according to Morgan Stanley’s London-based analyst Michael Kafe. The investment house is upbeat about prospects for South Africa in 2007, and sees the “biggest risk” as politics. “This is not because we think South Africa is headed for a political stalemate – there is no shortage of able leadership. Even so, we think that uncertainties surrounding important political events could send some jitters through the market.”