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Local Risks Worsen South Africa's Pain Amid Emerging-Market Rout

South Africa’s risk premium widened at a faster rate since the beginning of August than the emerging-market average, suggesting local risks are exacting an added cost amid a broad sell-off of developing-nation assets.

The premium investors demand to hold South African debt rather than U.S. Treasuries, known as the sovereign spread, has climbed 63 basis points since the beginning of August to 336, the highest level since November 2016, according to JPMorgan Chase & Co. indexes. The emerging-market premium increased 43 basis points in the same period.