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National Treasury Responds to IMF Staff Visit

June 4, 2019

National Treasury

4 June 2019

President Ramaphosa’s State of the Nation Address on 20 June 2019 will provide further details of government’s plans to support inclusive economic growth.

National treasury confirmed this in a statement announcing the conclusion of the International Monetary Fund’s (IMF) staff visit to South Africa.

According to treasury, the IMF was in South Africa from 27-31 May 2019 to discuss economic developments in the country.

Meetings were held with government, the South African Reserve Bank, state-owned enterprises (SOEs), business, and academia.

Some findings of the IMF include that South Africa’s growth potential is “dependent on the pace of implementation of structural reforms such as strengthening governance, encouraging competition, increasing labour market flexibility and reducing the cost of doing business” and that the fiscal deficit is likely to worsen due to the growth outlook putting additional pressure on debt levels.

“A major risk to South Africa’s growth is the weak finances and operations of state owned enterprises, especially Eskom.”

In response, treasury outlined some of the measures government has taken to address the challenges including publishing of the Mining Charter and the withdrawal of the Mineral and Petroleum Resources Development Amendment Bill, the signing into law of the Competition Amendment Bill and improving governance at SOEs.

Treasury reiterated government’s commitment to reduce the deficit and stabilize debt as outlined in the 2019 Budget.

Meanwhile, treasury, in Government Gazette 42499, recently published the statement of actual revenue, expenditure and borrowings with regard to the National Revenue Fund as at the end of April 2019.

The table was published in terms of the Public Finance Management Act.