Macroeconomic Trends in South Africa REPORT - November 2023

Public debt is expected to stabilize in 2025/26 as stated in the 2023 Budget Review back in February, albeit at 77.7 per cent and no longer at 73.6 per cent of GDP as previously forecast, but still a feat that will allow the government to prevent the rise in debt-service costs. The fiscal strategy of the MTBPS further commits the government to obtaining a primary budget surplus in the current year and over the medium term, and towards reconfiguring the State and/or government functions. Other reform opportunities will be proposed in the 2024 Budget Review, including the establishment of an “Infrastructure Finance and Implementation Support Agency” that will tackle the need to assemble private sector finance and expertise into the public infrastructure programme.