On Monday the IMF board approved a R70bn support package for SA to navigate the economic hardships imposed by the Covid-19 pandemic and resulting low growth in trading partner countries, as well as the decline in domestic production.

It is not uncommon for countries recovering from economic distress to source loans from financial intermediaries or international organisations to finance the recovery. SA was already in a technical recession before the pandemic, with worsening unemployment levels and rising poverty. The government’s much-needed response to the pandemic has placed great strain on the fiscus and worsened the balance of payments deficit...

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