The National Treasury said on Monday that South Africa’s delegation to the World Economic Forum has driven the message that SA is a top destination for growth and investment.
Team SA’s delegation was led by Finance Minister Enoch Godongwana, and he noted that despite the challenges facing South Africa, the country is making progress.
Godongwana reminded delegates and world leaders that SA has “made tremendous progress in the past 30 years” despite our challenges.
“Yes, we face a number of obstacles to achieving policy that balances fiscal sustainability, growth-accelerating reforms, and targeted spending on social services and infrastructure. However, we are forging ahead and making good progress,” the minister noted.
The WEF offered SA’s policymakers a genuine and rare opportunity to speak directly with a cross-spectrum of stakeholders in global affairs, he explained.
“Climate, technology, trade, and multilateral cooperation were high on the agenda, as was South Africa’s upcoming presidency of the G20 in 2025,” he added.
“In addition to its participation in the G20, the country is playing a key part in the expansion of the BRICS group as well as the deepening of intercontinental economic integration through the African Continental Free Trade Area,” Treasury said in a statement.
KEY TAKEAWAYS FROM WEF
Over the last week, Godongwana made a number of impactful statements about SA’s economy.
He noted that Treasury cannot rule out tax increases for 2024, as government is dealing with a huge budget shortfall.
The minister said he cannot deny that tax increases are an option, but he did acknowledge that it would be a difficult exercise to undertake, given the current fiscal environment.
INFLATION AND INTEREST RATES
The South African Reserve Bank (SARB) Governor, Lesetja Kganyago, told media outlets last week at WEF that he ruled out cutting interest rates as inflation is still too prevalent in the country.
Kganyago noted that while real rates are not as high as before, they are not where he wants them to be.
“Our real rates are not particularly high, and inflation has come down — it's within target — but it is not quite where we would like to see it,” Kganyago said.
It should be noted that this Thursday (January 25), the South African Reserve Bank’s monetary policy committee (MPC) will announce the first repo rate for the year.
IOL NEWS