'South Africa will lose investment rating '

- Chances are that South Africa will be investment grade rated lose. This has major implications for premiums on loans and investments by large funds in the resource-rich South Africa.

This enables asset managers Schroders. Emerging markets are reforming, but that is a matter of long breath, said Craig Botham, emerging markets economist at Schroders.

Looked at other markets, he sees little ones chances of reforms in India under Prime Minister Narendra Modi.,, In India meanwhile saves disappointment to the lack of real reforms. 'Next month there are local elections, Modi works with a majority in parliament.

Indonesia is trying to encourage the private sector to invest in reforms. But just as in India it is the government that contributes most to the growth in investment, particularly in infrastructure.

The political stability, India and Indonesia, lacking in other emerging economies such as Brazil and South Africa. President Zuma is in South Africa under fire for self-enrichment.

But it is unlikely that this really threatens his position, says Botham because his party nbsp; the majority in parliament.

Botham believes South Africa will go the same way as Brazil and lose its investment grade rating. A downgrade to sub-investment grade is possible, given the slowdown in growth, deficits and high debt, says Botham.