Tag: budget

IMF approves $4.3 bn to help South Africa fight COVID-19

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.

South Africa unlikely to sort out its debt in four years – Fitch.

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.

THE WEEKEND READ: Analysis– a budget long on words but short on detail.

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.

COMMENT: Why it may be easier for Tito Mboweni to wrestle a hippo rather than close its mouth.

“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.

Digging deeper into the 2020/21 Kenyan budget

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....

SA trade union COSATU says it won’t allow workers’ wages to be slashed

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.

MEC Tasneem Motara on how Gauteng plans to create jobs through infrastructure investment

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.
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