South Africa is broke, increasing the odds of an IMF bailout

President Cyril Ramaphosa receiving a courtesy call from IMF managing director Christine Lagarde as part of her Africa trip on 19 December 2018. Picture: GCIS

The choice is stark yet simple. Either we prescribe our own medicine, or someone else will prescribe it for us. And it will be bitter, bitter medicine.

Sipho Pityana, President - Business Unity South Africa

South Africa’s debt burden is spiralling out of control (Eskom by itself owes R500 billion), threatening to collapse the entire economy.

Increasingly, there are suggestions South Africa may soon need an International Monetary Fund (IMF) “bailout”, a first for the country.

In return for aid; the IMF imposes painful structural reforms and demands extreme austerity.

What would an IMF bailout look like?

The Money Show’s Bruce Whitfield asked Sygnia Group CEO Magda Wierzycka and Peter Attard Montalto (Head of Capital Markets Research at Intellidex) for comment.

Listen to the interview in the audio below (and scroll down for quotes from it).

We’re not at the point yet of requiring the IMF…

Peter Attard Montalto, Head of Capital Markets Research - Intellidex

…Government is embroiled in fighting political battles…

Magda Wierzycka, CEO - Sygnia Group

The only way to bring expenditure under control is to begin retrenching people… there is no political will…

Magda Wierzycka, CEO - Sygnia Group

We keep borrowing…

Magda Wierzycka, CEO - Sygnia Group

We’re still a couple of steps away from an IMF bailout… but not many steps…

Magda Wierzycka, CEO - Sygnia Group

We should be looking at privatising. Those entities should be someone else’s liability…

Magda Wierzycka, CEO - Sygnia Group

I don’t think the introduction of prescribed assets is the worst option…

Magda Wierzycka, CEO - Sygnia Group

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : South Africa is broke, increasing the odds of an IMF bailout


Recommended

by NEWSROOM AI
Read More
MTN asks Nigeria to forgive its $1 billion fine

MTN asks Nigeria to forgive its $1 billion fine

The South African telecoms giant has 58 million subscribers in Nigeria, says Lee Kasumba (Africa State of Mind).

Nedbank expects South Africans to get poorer on average in 2019

Nedbank expects South Africans to get poorer on average in 2019

Nedbank cut its growth forecast for 2019 from 1.3% to 0.5%. The Money Show’s Bruce Whitfield interviews its CEO, Mike Brown.

Patrice Motsepe's African Rainbow Capital (ARC) buys 25% of Capital Legacy

Patrice Motsepe's African Rainbow Capital (ARC) buys 25% of Capital Legacy

The Money Show’s Bruce Whitfield interviews Alex Simeonides, founder and CEO at Capital Legacy.

Paying with a debit card? Don’t expect a refund on it when returning items

Paying with a debit card? Don’t expect a refund on it when returning items

Merchants are not allowed to process refunds on debit cards, warns consumer journalist Wendy Knowler.

How to calculate how much money you need to never have to work again

How to calculate how much money you need to never have to work again

How much is enough? Is there a simple calculation? Warren Ingram, a personal financial advisor at Galileo Capital, explains.

How to get a tax refund from Sars

How to get a tax refund from Sars

The Money Show’s Bruce Whitfield interviews Daniel Baines, author of “How to get a SARS Refund”.

Popular articles
Zondo Commission a 'victory' for South Africans,  says analyst

Zondo Commission a 'victory' for South Africans, says analyst

Ralph Mathekga unpacks the state capture inquiry since its commencement one year ago.

[WATCH] Ndlovu Youth Choir shine once again with latest AGT performance

[WATCH] Ndlovu Youth Choir shine once again with latest AGT performance

The inspiring South African choirU2's Beautiful Day at America's Got Talent quarter-finals.

Want to get rich? Got R100? You don’t need millions to start

Want to get rich? Got R100? You don’t need millions to start

Bruce Whitfield interviews Anthea Gardner, author of "Make Your Money Work for You: Think Big, Start Small".

SA’s richest woman opens up about being a refugee and becoming a billionaire

SA’s richest woman opens up about being a refugee and becoming a billionaire

Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).

Mystery solved: Why smelly, blue sewage has been leaking into Cape Town forest

Mystery solved: Why smelly, blue sewage has been leaking into Cape Town forest

The reason for the leakage has been revealed, explains Table Mountain Aerial Cableway MD Wahida Parker.

W Cape traffic chief: Stay close to other motorists on N2 to stay safe

W Cape traffic chief: Stay close to other motorists on N2 to stay safe

W Cape Traffic Chief Kenny Africa says private security working with the department is helping curb the stonings on the highway.

Were missing SA men victims of Vietnamese organ harvesting syndicate?

Were missing SA men victims of Vietnamese organ harvesting syndicate?

Gift of the Givers fears two South African men who went missing in Vietnam may have fallen prey to an organ harvesting syndicate.