South Africa may need funding from the IMF

The National Planning Commission says that South Africa may need funding from the International Monetary Fund (IMF). The reason for loan may be due to the rising debt, lower savings and tax revenues.

South Africa is experiencing a lot of economic pressure with sluggish economic growth, high unemployment, increasing debt, a lowering of investment as well a market presence in global trade.  The biggest problem may be the increasing debt will limit social investment and development effecting social stability.

The good news is South Africa still has the capacity to pull itself out of the economic constraints it is in. Ways of doing that will be bringing South Africa back to positive growth by increasing tax-collection rates, improving efficiency in the public-sector and service delivery per rand spent.

Added with the stimulus package South African President Cyril Ramaphosa has planned to revive the economy spur job growth. Forecasting by the reserve bank has shown positive economic growth of 0.7% by the end of the year.

 

Source: businesstech.co.za

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