By Thebe Mabanga
Finance Minister Enoch Godongwana will deliver the Medium-Term Budget Policy Statement (MTBPS) on Wednesday, the second under the Government of National Unity (GNU), but the first fully owned by the coalition.
This follows the drama surrounding this year’s budget, which was delayed until May after a court challenge by opposition parties, including the Economic Freedom Fighters (EFF), over the proposed VAT increase.
Following South Africa’s exit from the Financial Action Task Force (FATF) Grey List, South Africa must now target the seemingly more difficult task of exiting junk status.
Two months ago, Fitch affirmed South Africa’s long-term foreign and local currency debt ratings at ‘BB-’ and maintained a stable outlook.
According to Fitch, South Africa’s credit rating is constrained by several factors, including low real GDP growth, high poverty and inequality levels, a high and rising government debt-to-GDP ratio among other.
“However, the ratings are supported by
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