The International Monetary Fund (IMF) said South Africa is restoring fiscal credibility despite geopolitical risks, but needs to deliver faster economic reforms to lift investment and growth.
Africa’s largest economy has shown genuine resilience in the face of an energy shock caused by the Iran war, Tidiane Kinda, the IMF’s resident representative to South Africa, said in an interview at Bloomberg’s Johannesburg offices on Tuesday. What is missing is investment.
“There is a bit of a wait-and-see sort of attitude,” toward infrastructure spending, he said. “Increasing public investment would help support growth.”
Finance Minister Enoch Godongwana cheered investors last week with a midterm budget outlook that showed debt peaked in 2025-26 and would decline in the years ahead, supported by better-than-expected revenue collection and moderate spending growth.
Kinda said the budget update reaffirmed the government’s commitment to spending prudence and debt stabilisation. He also gave the National Treasury credit
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Start your free trial today.
Start your FREE trial nowNeed help? molokom@insideeducation.co.za
