Too rich for debt relief available to most African nations and hobbled by its politics, South Africa is facing a public financing crisis.
“Even as South Africa responds to the current health and economic crisis, a fiscal reckoning looms.
Even as South Africa responds to the current health and economic crisis, a fiscal reckoning looms.
South Africa’s fiscal decline accelerated over the past decade as loss-making state-owned companies including Eskom and South African Airways received a series of bailouts and the government repeatedly failed to rein in public sector wages.
But warnings it may require additional budget support and have to follow a structural reform programme mandated by the Washington-based lender are unlikely to be heeded ahead of municipal elections next year, said Ralph Mathekga, a political analyst and author of books about South African politics.