Tag: government debt

The proposal for a universal basic income grant (BIG) has been on the table for almost 20 years. It was first recommended by the Committee of Inquiry (Taylor Committee) into a Comprehensive System of Social Security for South Africa in 2002, after a number of civil society organisations had petitioned for it on account of persistent poverty and structural inequality.

We have once more partnered with FTSE Russell to launch a new multi-asset index solution for the South African market, leveraging the long-standing relationship between the two organisations and the rich base of the existing index offering.

A year ago, reality started sinking in that the new coronavirus from Wuhan would not be contained to China. No fewer than 25 countries had confirmed cases, and the first deaths outside China were being reported. On 11 February 2020, the disease caused by the new coronavirus was named COVID-19.

Moody’s and Fitch downgraded SA’s foreign-currency sovereign rating and its local-currency rating.

The captain of Ship SA, President Cyril Ramaphosa, can surely see the iceberg that we are heading for and one can almost hear the call go out for us to 'brace for impact'. The iceberg is an economy that is in crisis – an unemployment rate of 42% (using the expanded definition), GDP growth projections down by 7.8%, tax revenue projections at R304 billion less than originally budgeted for, a budget deficit of R709 billion for 2020/21, a current debt to GPD level of 81.8% and debt service costs (interest) currently amounting to 21c in every tax Rand collected.

The immense socio-economic impact under one of the world’s most extreme lockdown’s during the COVID-19 pandemic has resulted in South Africans uniting for their voices to be heard under a grassroots movement called Move One Million.

We have prepared a short summary and useful infographic following the president’s announcement of a R500 billion economic and social relief package in his address on Tuesday night 21 April 2020. The source of the remainder of the R500 billion financing outside of the R200 billion loan guarantee scheme, budget reprioritisation of R130 billion and around R100 billion from multilateral sources and global partners

Minister of Finance Tito Mboweni will deliver his 2020 budget speech today. South Africa enters a new decade with a growth forecast of only 0.7% (according to ratings agency Moody’s).

As an election year, a second State of the Nation Address (SONA) will probably be held during June 2019 wherein the newly elected government will present their programme of action for the 2020 financial year. The SONA address that was delivered by President Cyril Ramaphosa on Thursday 7 February 2019, accordingly reflected on the Medium Term Strategic Frameworks designed and implemented in the past five years.