With cap in hand: SA's slippery slope to IMF aid
Experts cite state capture as likely tipping point
Last week Finance Minister Malusi Gigaba visited Washington to cast a positive light on South Africa's economy amid political tension back home. Gigaba's trip to the IMF/ World Bank spring meetings, which got under way last week and were interspersed with investor engagements and a meeting with Moody's, happened when several African economies are charting difficult waters, some turning to the IMF for aid. Take Ghana, the poster child for the Africa rising narrative three years ago until a plunging currency, rising inflation and double-digit fiscal deficit - as its spending exceeded its revenue - forced it to seek a $918-million IMF loan. Mozambique, Malawi, Tanzania, Kenya, Burundi and Sierra Leone are among about 20 African countries that are on IMF aid. In January, Nigeria was reportedly in discussions with the IMF, among other lenders, for emergency assistance. The next month it said it would rather pursue its own economic reform plan. South Africa may be in a stronger position t...
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