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Busisiwe Mavuso | Godongwana's conundrum: Paying SA's debt while growing the economy

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Busisiwe Mavuso.
Busisiwe Mavuso.
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SA is in a tight spot. The country has to repay its bonds that fall due while we have no surplus cash, having to borrow new money from markets because it is running a fiscal deficit. It will have to fund this new debt at higher interest rates, while facing rising pressures for increased spending in other areas, says Busisiwe Mavuso. 

There’s a heap of pressure headed for the fiscus in the form of a batch of bond redemptions falling due over the next two years while costs for new debt are accelerating in line with fast-rising global and domestic interest rates and increased SA-related risks, particularly around energy.

SA is due to repay roughly R443 billion in bond redemptions from 2023 to end-2026 with the first payment of R68.2 billion due on 28 February next year. That compares with about R159 billion paid out in bond redemptions in the past four years.

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