The IMF has urged South Africa and other African states to consider enhancing their tax bases or cutting spending to fund development, rather than taking on new debt in the current climate.
Asked how South Africa could fund its R75bn medium-term shortfall without additional income from the now rescinded VAT hike, Abebe Aemro Selassie, the director of the IMF’s Africa department, said the country was in a bind that was typical of nations on the continent with elevated borrowing costs...
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