South Africa’s declining economic performance over the past 15 years has translated into a looming financial crisis, with the government’s debt burden at risk of becoming unsustainable.
The state’s debt burden as a share of GDP has already crossed 75% and is expected to stabilise later than previously thought due to continued economic underperformance, resulting in slower tax revenue growth.
As a result, debt-servicing costs are beginning to crowd out spending in other areas, hampering economic growth and service delivery.
Sam Busa