South Africa may tap international capital markets for the first time in almost two years to finance a widening budget deficit after a bond rally reduced borrowing costs. The government picked Citigroup, Rand Merchant Bank and Standard Bank as joint lead managers, and Investec Bank as a co-manager for a call with investors yesterday, according to a person with knowledge of the plan, who is not authorised to speak publicly and asked not to be identified.Africa's most industrialised country may choose to sell a benchmark-sized dollar bond due in 2026, the person said.South Africa's financing needs have become pronounced as its budget deficit swelled to an average of about 4% of GDP in the past four years.The country, which last sold dollar debt in July 2014, included plans in the budget announced in February to raise $1-billion abroad."This would be good timing in my view," said Kevin Daly, a money manager at Aberdeen Asset Management in London, who helps oversee $10-billion in emerging market debt."Yields are generally low and you have decent market demand," he said. ..