In a part of the world where 85 per cent of the population earn their living in the informal sector,unemployment as a direct result of the coronavirus pandemic could push an additional 28 to 49 million people into extreme poverty. Moreover, if we fail to take adequate action, the impact of the crisis on food insecurity and malnutrition may be even worse than anticipated.
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.
Finance ministers of East Africa are expected to table their respective budgets in coming days for the new financial year that begins on July 1.
“In times of extreme market volatility (and corrections), it is often unnecessary for investors to look far down the quality curve to find attractive opportunities that will generate significant returns in future. This is oftentimes the correct strategy as those economic uncertainties causing market volatility can have far more dire consequences for lower-quality businesses,” writes Stephán Engelbrecht, Fund Management.
Moody's Investors Service ("Moody's") has today placed Angola Government's B3 long-term issuer ratings and senior unsecured rating and its (P)B3 senior unsecured MTN rating under review for downgrade. The short-term issuer rating is affirmed at Not Prime (NP).
Moody's warns "even if the government achieves its planned spending restraint, the government's projected primary deficit of 1.1% of GDP by fiscal 2022 would still be too wide to stabilize the debt burden."
South Africans are desperate for innovative payment solutions that don’t involve credit traps. what is available for online shoppers and is there a way to avoid credit in all its disguises entirely?