South Africa’s debt dilemma

South Africa is in a debt dilemma due to poor economic management that burdened the economy with seemingly unending challenges: power shortages, transport bottlenecks, political uncertainty, stagnation in growth, high unemployment rates, under-investment, overspending and lack of fiscal consolidation. The result has been escalating debt levels.
South Africa’s debt burden has multiplied in recent years. In 2006, the country's total debt was a modest R500 billion. By 2011, this had grown to R1 trillion and escalated to R4.7 trillion by 2022. It is expected to approach a whopping R6 trillion by 2025.
Of course, the economy has also grown, but not proportionately. Relative to the country's Gross Domestic Product (GDP), the debt burden increased from a conservative 30% of GDP to a worrisome 70% of GDP over this period. If not for the statistical rebasing of GDP, we would be closer to 80% now.
Listen to Linda Eedes, investment executive at Foord Asset Management discuss the risks and opportunities this holds for South Africa.
11 Sep 2023 English South Africa Business · Business

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