SOUTH Africa’s Treasury vowed to return state finances to a sustainable path, holding off expanding welfare measures in one of the world’s most unequal societies.
Government bonds and the rand gained. Delivering his first budget since being appointed finance minister in August, Enoch Godongwana set more ambitious targets to rein in debt, reduce loan-serving costs, narrow the budget deficit and cut spending in the coming year, while sticking to a commitment to freeze civil-servant wages.
The yield on the 10-year generic rand bond fell seven basis points to 9.76%, while the rand strengthened 1.4% against the dollar at 4.54 p.m. local time.
The former labor unionist and head of economic transformation in the ruling African National Congress (ANC) also pledged to accelerate structural reforms to bolster economic growth and address the havoc wrought by the coronavirus and the deterioration in government finances caused by a decade of overspending, mismanagement and
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