Three million South Africans have lost their jobs - nearly a third of the working population with formal jobs. Economists fear many more jobs could be lost as cash-strapped companies go down like dominoes.
We view the government's forecast of gross loan debt rising to 81.8% of GDP in FY21, much higher than the 65.6% in the original budget, as realistic. However, we believe its expectation that debt will peak at 87.4% in FY24 is optimistic. This would require sufficient fiscal consolidation to achieve a primary budget surplus in that year, which would be South Africa's first since 2008, towards the end of the commodity boom.
Approaching the IMF and World Bank for assistance will rankle many within the ruling African National Congress (ANC) and its alliance partners. Mr Mboweni found himself in the cross hairs in April when ANC Secretary General Ace Magashule and his alliance counterparts called on President Cyril Ramaphosa to reject an approach to the IMF or World Bank for assistance in the fight against Covid-19 following comments by the finance minister.
COVID-19: “This Hippo is eating our children’s inheritance”Tito Mboweni on debt in the emergency budget
"We have flattened the curve and saved many lives. As a farmer will tell you when the storm is raging you have to protect you plants....the storm shall pass," says Mboweni.
“There is not much wriggle room that the fiscus has left coming into 2020 and now we face this miracle budget with a shortfall in revenue,” says Nesan Nair a senior portfolio manager at Sasfin.
Kenya, just like her neighbours Uganda and Tanzania released her national budget last week but is the new budget some form of government bubble? George Bodo, Director of Callstreet Research, joins CNBC Africa for more....
South Africa’s largest trade union federation COSATU said on Wednesday that it would not allow workers’ wages to be slashed, after Finance Minister Tito Mboweni used a budget speech to promise cuts to the public sector wage bill.
As part of the Gauteng budget infrastructure development received additional funding to support key projects. CNBC Africa spoke with Gauteng Infrastructure Development MEC Tasneem Motara for more.