Johannesburg – This week the Minister of Finance, Tito Mboweni, delivered his 2021/2022 budget, a particularly tough one, with huge pressure to strike the right balance between providing relief for many South Africans and at the same time, consolidate the country’s fiscal position as we continue to reel from the effects of the Covid-19 pandemic.
Providing evidence of fiscal discipline to the international rating agencies is important. With South Africa’s high debt ratio of some 88% to GDP any downgrades of the country’s credit rating by these agencies will have an adverse impact on our already high interest payments on our international debt.
Gustav Raubenheimer, Interim CEO of African Bank, says, “We appreciate the pressure…