Finance Minister Enoch Godongwana delivered his maiden Medium-Term Budget Policy Statement on Thursday afternoon where he focused on South Africa’s debt-service costs problem.
Godongwana joked that he dressed better than his predecessor Tito Mboweni but that on fiscal issues, the two are in lockstep. The finance minister signalled that he would continue Mboweni’s tough-love approach and emphasised the need to conserve expenditure and pay down SA’s whopping R4.3 trillion debt.
The economy grew faster than expected for the first half of this year but tapered off due to violence and looting in July and the knock-on effects of the coronavirus said Godongwana.
“Godongwana says Treasury expects real GDP to grow by 5.1% this year – somewhat better than had been anticipated at the beginning of 2021,” reports SABC news.
Godongwana also announced that there would be no further funding for state-owned enterprises as government looks to rein in expenditure further.
Read our budget roundup for some of the key issues from yesterday’s mini-budget speech.
Former state president and the last president to preside over the apartheid regime, FW de Klerk, died on Thursday. De Klerk was 85 years old and died in the early morning hours after a battle with cancer.
De Klerk cut a controversial figure in South Africa since the end of apartheid and the birth of democracy and while he did take steps to end the apartheid state it has often been seen as more of a pragmatic political manoeuvre rather than for any great reconciliatory motive or visionary leadership.
He was awarded the Nobel Peace Prize along with Nelson Mandela in 1993 (Subscribe to read) but failed to fully renounce apartheid through the remainder of his life always dealing with the subject with some sort of caveat in his explanations. De Klerk refused to call apartheid a crime against humanity likening a genocide to one but falling short of labelling apartheid with the same moniker.
In his final video address to the nation, released by the FW de Klerk Foundation posthumously, De Klerk apologised “without qualification” for apartheid.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
Treasury making good on promise to reduce public sector salary bill – Daily Maverick
Govt wants to sell Eskom’s coal-fired power plants, Godongwana says – Bloomberg (via Fin24)
Local is lekker for MultiChoice as Devilsdorp doccie reels in subscribers – Fin24
Global Business
Musk Throws Fresh Shade at Rivian a Day After Rival’s Big IPO – Bloomberg (via Daily Maverick)
SpaceX capsule with crew of four docks with ISS – AFP
China Resists Coal Phase-Out a Day After U.S. Deal – Bloomberg
Markets
Asian markets rise on outlook hope but eyes on inflation – AFP
Goldman Predicts Boost for Chinese Stocks From Softer Regulation – Bloomberg
Dollar hits 16-month high as inflation fears put it on track for best week since June – SABC News
Opinion/In-depth
FW de Klerk: the last apartheid president was driven by pragmatism, not idealism – The Conversation
The complex legacy of FW de Klerk, the South African president who straddled apartheid and democracy – Daily Maverick
South Africa at risk of being placed on watch list of kidnapping hotspots after Moti brothers saga – Daily Maverick
Video
Unpacking Godongwana’s maiden medium-term budget – Business Day TV
Evergrande dodges default, again – Reuters Video
Crypto boom strains Kazakh energy grid – Reuters Video
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