ASHLEY NYIKO MABASA: Lessons from Jamaica: dealing with SA’s debt crisis by following the IMF playbook
The country’s adoption of fiscal rules tackled the debt problem head-on
03 April 2025 - 05:00
SA’s debt servicing has become the largest expenditure item in the national budget, prompting finance minister Enoch Godongwana to warn that failure to address the growing debt burden could push the country into a fiscal crisis.
With a debt-to-GDP ratio of 75.1%, SA’s situation may not yet be as severe as that of France or the US, both of which exceed 100%. However, the trajectory is concerning. SA’s debt surged from R627bn (23.6% of GDP) in 2008-09 to R5.26-trillion (74.1% of GDP) now, leading to an unsustainable debt service cost of 21.6% of revenue. ..
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