SOUTH AFRICA: Pandemic response and consensus faltering
● As South Africa concludes its first week of “Level 4” pandemic restrictions, the government’s poor handling of the limited restart and the continuation of seemingly irrational restrictions is fast eroding rare consensus around President Cyril Ramaphosa’s hitherto strong pandemi… Become a member to read the rest of this article Username or E-mail Password […]
SOUTH AFRICA: Limited lockdown relaxation from 1 May
President Cyril Ramaphosa this evening, 23 April, announced that the government will implement a “risk-adjusted strategy” to easing the current lockdown restrictions beyond Thursday, 30 April, when the current five-week lockdown is due to end. This hardly amounts to a grand reope… Become a member to read the rest of this article
SOUTH AFRICA: Go big or go home
● This evening, 21 April, President Cyril Ramaphosa announced a ZAR 500bn (USD 26bn) economic stimulus plan, a massive step up from the meager fiscal and tax interventions announced to date. ● While the details of the speech will be unpicked over the next few days, we outline ke… Become a member to read […]
SOUTH AFRICA: Double trouble
● South Africa’s currency and fiscal woes have taken another hit from Fitch’s 3 April downgrade of the sovereign’s long-term foreign and local currency credit ratings from BB+ to BB, with a negative outlook. ● Although President Cyril Ramaphosa’s decisive handling of the pande… Become a member to read the rest of this article
SOUTH AFRICA: Nationwide lockdown from Thursday
● President Cyril Ramaphosa has invoked the Disaster Management Act to enforce a nationwide lockdown from 26 March until 16 April to limit the spread of COVID-19. ● Taking its cue from Asian models, the administration is opting for decisive early-stage intervention, in the hop… Become a member to read the rest of this […]
SOUTH AFRICA: Pandemic adds uncertainty to government’s wage bill battle
● The South African Reserve Bank (SARB)’s rare 100 basis point rate cut today, 19 March, will provide a welcome monetary boost. ● But the fiscal outlook is expected to worsen further, particularly if the anticipated recession and any fiscal stimulus measures combine with a fai… Become a member to read the rest of […]
SOUTH AFRICA: COVID-19 could not hit at a worse time
● The fallout from the COVID-19 pandemic will only sharpen the National Treasury’s fiscal dilemmas and weaken South Africa’s odds of holding on to its final investment-grade credit rating. ● Within South Africa’s borders, the number of COVID-19 cases is ticking up, but draconi… Become a member to read the rest of this article
SOUTH AFRICA: Mboweni promises wage bill cuts, but can he deliver?
The key concession to credit ratings agencies in Finance Minister Tito Mboweni’s 26 February budget presentation was his promise to reduce South Africa’s wage bill by ZAR 160.2bn over three years. However, it is not clear if the government can deliver and if the plan can b… Become a member to read the rest […]
SOUTH AFRICA: Mboweni promises wage bill cuts, but can he deliver?
● The key concession to credit ratings agencies in Finance Minister Tito Mboweni’s 26 February budget presentation was his promise to reduce South Africa’s wage bill by ZAR 160.2bn over three years. ● However, it is not clear if the government can deliver and if the plan can b… Become a member to read […]
SOUTH AFRICA: Mboweni’s do-or-die budget
Expectations ahead of the budget presentation on 26 February are largely pessimistic in the context of deteriorating economic growth and skyrocketing public debt. Finance Minister Tito Mboweni will try – against all odds – to avert the loss of South Africa’s final … Become a member to read the rest of this article