National Treasury - The African Mirror

Mar

2024

South African president extends central bank governor’s term, appoints new deputy

SOUTH African President Cyril Ramaphosa has extended the term of central bank governor Lesetja Kganyago for another five years from November and appointed Mampho Modise as a new deputy governor of the bank, the presidency said on Friday. "The re-appointment of Governor Kganyago will ensure continuity and institutional stability at the reserve bank," the presidency said in a statement. Kganyago's term was extended to 2029, which will make him one of the longest-serving governors in democratic South Africa. He was first appointed in 2014. Modise, who is currently a deputy director-general in the National Treasury, will start her role on…

Feb

2024

By KOPANO GUMBI, OLIVIA KUMWENDA-MTAMBO and NELLIE PEYTON

South Africa taps contingency reserves to limit rising debt

BUSINESS

SOUTH Africa's government will draw down $8 billion over the next three years from contingency reserves held at the central bank to limit rising debt, the National Treasury said. Africa's most industrialised economy has barely grown in over a decade, with rising debt-servicing costs eating up a growing share of the national budget. The bleak economic backdrop is looming large over a general election due on May 29 that could see the governing African National Congress party lose its parliamentary majority for the first time since the end of apartheid 30 years ago. Presenting the 2024 budget, Finance Minister Enoch…

Nov

2023

By KOPANO GUMBI, ANAIT MIRIDZHANIAN and WENDELL ROELF

South Africa seeks tax boost as higher debt peak forecast

BUSINESS

SOUTH Africa's finance minister will propose tax changes next year as part of an effort to stabilise public finances that are under strain from a drop in mining revenue, a mid-term budget review showed. The budget document presented to parliament projected wider deficits over the next three years and saw debt peaking at a higher level than in February when the main budget was tabled. Revenue collections in the current 2023/24 fiscal year were forecast to be 56.8 billion rand ($3.04 billion) below estimates in February. The National Treasury said it was committed to spending reductions, moderate tax measures and…

Apr

2023

By The African Mirror

‘SA should spend to end blackouts’

NEWS

SOUTH Africa should not shy away from spending to fix the country's power crisis, its electricity minister told Reuters, ahead of a cabinet decision later this month on his proposals to end the worst power blackouts on record. Kgosientsho Ramokgopa, appointed last month to the newly created role, was speaking in an interview less than two months after the National Treasury granted state utility Eskom 254 billion rand ($13.81 billion) of debt relief over the next three years. President Cyril Ramaphosa's government has made repeated attempts to improve power availability but failed to make progress. Ramokgopa's appointment is the latest effort to…

Feb

2023

By The African Mirror

South Africa govt to take on half of struggling Eskom’s debt

NEWS

OLIVIA KUMWENDA-MTAMBO, WENDELL ROELF and KOPANO GUMBI SOUTH Africa's government plans to take on more than half of struggling state power company Eskom's debt over the next three years to help strengthen its balance sheet and operations and enable it to restructure, National Treasury said on Wednesday. Treasury said the government would take on 254 billion rands ($14 billion) of Eskom's 423 billion rand debt that was at risk of default, to enable the utility to pay down the debt and interest obligations. The move will free up money for spending on maintenance and the transmission and distribution parts of…

Sep

2021

By The African Mirror

South African state insurer in talks over larger bailout

BUSINESS

SOUTH Africa's state-owned insurance company Sasria is in talks with the National Treasury for a larger bailout than the 3.9 billion rand ($272 million) already promised, its managing director has told a parliamentary committee. Sasria, the only insurer covering political violence in Africa's most advanced economy, has suffered a sudden deterioration in its financial position after some of the worst violence in the post-apartheid era erupted in July soon after the arrest of former president Jacob Zuma. More than 300 people died and around 3,000 shops were looted in the immediate aftermath of Zuma's arrest, with anger over entrenched poverty…

Apr

2021

By The African Mirror

‘There are no Heritage Fund billions’

NEWS

AFRICAN MIRROR REPORTER THE SOUTH African government and Reserve bank have rejected sensational allegations that billions meant for education projects and COVID-19 have been stolen. Instead, the National Treasury and the Reserve Bank have suggested that politician and businessman Tokyo Sexwale, who made the allegations, has been scammed. In a joint statement, the National Treasury and Reserve Bank said the National Heritage Fund does not exist and challenged Sexwale to prove otherwise. The Nationa Treasury and Reserve Bank suggested that the allegations pointed to a common scam. “Over the years, National Treasury and the SARB have received many such requests…

Oct

2020

By The African Mirror

S.Africa’s Denel seeks $231 million state support

BUSINESS

SOUTH African state defence company Denel has asked for 3.8 billion rand ($231 million) in state financial support over the next three fiscal years, the National Treasury told Reuters on Friday. Denel, which makes military equipment for South Africa’s armed forces and export, has struggled to pay salaries this year amid a liquidity crisis aggravated by the coronavirus crisis. “Denel has requested a 3.8 billion rand bid over the 2021/22 to 2023/24 MTEF (Medium Term Expenditure Framework) period,” the National Treasury said in an emailed response to questions. A Denel spokeswoman was not able to immediately comment. State firms have…

Sep

2020

By The African Mirror

S.Africa’s coronavirus loan scheme lags, hobbling govt relief package

COVID-19

EMMA RUMNEY and ALEXANDER WINNING SOUTH Africa’s National Treasury plans no further easing of its coronavirus loan scheme criteria to stimulate uptake, it told Reuters, meaning almost a third of the government’s 500 billion rands ($30 billion) relief package may end up going unused. The 200 billion rand loan programme is a pillar of South African efforts to shield small businesses from the impact of the pandemic. Conditions were tweaked in July, including expanding who qualifies and extending the repayment grace period, after relatively few firms applied for the loans. Still, only 14.5 billion rand had been paid out through…

Sep

2020

By The African Mirror

South African state arms firm at risk of bankruptcy protection, govt says

BUSINESS

SOUTH African state arms firm Denel faces the risk of being placed under a local form of bankruptcy protection called business rescue or even liquidation, the National Treasury said on Tuesday. Denel, which makes military equipment for South Africa’s armed forces and clients around the world, has struggled to pay salaries this year amid a liquidity crisis aggravated by the coronavirus crisis. National Treasury said in a presentation to parliament that Denel was forecast to have had a negative equity position of 3.3 billion rand ($196.7 million) as of March 2020. - Thomson Reuters Foundartion.