South Africa’s evolving debt landscape

2-minute read
07 January 2024 | 12:43 CAT

Image: FurtherAfrica

In a dynamic economic landscape, South Africa’s debt profile is undergoing a notable shift, raising concerns about the potential impact on the country’s financial stability.

As the government increasingly taps into foreign currencies for funding, questions arise about the risks and strategies involved.

South Africa’s National Treasury is considering withdrawing as much as half of the R497 billion contingency reserves held by the central bank to help reduce the government’s debt load or fund public-sector wages.

The withdrawal is being considered as South Africa prepares for elections and when public finances are under significant strain.

The government is collecting less revenue because an energy shortage and logistics constraints are curtailing mining and other companies’ profitability. At the same time, the state is facing rising debt-service costs and a growing civil-servant wage bill.

Drawing down on the account in a low-growth-trapped economy like South Africa, where spending needs are increasing on an annual basis, offers a short-term fix at a time when a longer-term fix solution is needed, said Jannie Rossouw, professor at Wits Business School at the University of the Witwatersrand.

“It’s a one-off use,” Rossouw said. “What we really need is an investment-friendly government. A government that invests in the economy so that you can have more active economic growth that will grow the tax base so that the government can have more revenue.”

Listen to the full interview on Sabahul Muslim with Moulana Habiba Bobat.

Alternative Mining Indaba 2026

Rabia Mayet | rabiamayet@radioislam.co.za 19 February 2026 1-minute read The Alternative Mining Indaba which concluded in Cape Town brought together an array of people under the theme: Alternative Stories of Mining, united in solidarity with the mining communities...

SANDF deployment to Cape Flats, parts of Gauteng sparks debate over long-term solutions

Neelam Rahim | neelam@radioislam.co.za 4-minute read 16 February 2026 President Cyril Ramaphosa’s decision to deploy the South African National Defence Force (SANDF) to combat gang violence on the Cape Flats and in parts of Gauteng has been met with mixed reactions,...

ASRI Report: Key SONA 2026 Takeaways on Water, Crime and District Six

Neelam Rahim | neelam@radioislam.co.za 4-minute read 13 February 2026 President Cyril Ramaphosa’s State of the Nation Address (SONA) has placed renewed attention on some of South Africa’s most urgent crises — from water insecurity and violent crime, to the fragile...

SONA 2026: Calls for Action on Frontline Public Services

Neelam Rahim | neelam@radioislam.co.za 3-minute read 11 February 2026 As South Africa prepares for the 2026 State of the Nation Address (SONA), renewed calls are being made for the government to prioritise the rebuilding of frontline public services, which analysts...

ActionSA’s Proposal For Immigrants

Rabia Mayet | rabiamayet@radioislam.co.za 17 February 2026 2-minute read On the revised ‘White Paper on Citizenship, Immigration and Refugee Protection’ published last year, Actions SA has proposed for only 10 thousand applications for asylum seekers to be considered...

What DA Premier Expects From SONA

Rabia Mayet | rabiamayet@radioislam.co.za 12 February 2026 2-minute read With 345 murders in the Western Cape this January, DA Premier Allen Winde states that his expectations from SONA this year are levelled towards crime. The party has been calling for a long time...