South Africa may approach the International Monetary Fund and World Bank for funding to fight the coronavirus that threatens to drag the country’s economy deeper into recession, Finance Minister Tito Mboweni said in the Sunday Times newspaper.
This morning in a conversation with the (central) Reserve Bank and the Treasury I indicated that we should proceed and speak to the IMF and the World Bank about any facility that we can access for health purposes,” Mboweni said in an interview with the weekly newspaper.
South Africa entered a 21-day lockdown on Friday, with people restricted to their homes and most businesses shuttered. The country has reported 1 187 cases of coronavirus and now almost certainly faces a deep recession.
On Friday, the country lost its last investment-grade credit rating when Moody’s downgraded South Africa to junk, citing persistently weak growth, fast-rising debt and the impact of unreliable electricity supply.
“We take no ideological position in approaching the IMF and World Bank. They are creating facilities for this environment and SA should also take advantage of those facilities in order to relieve pressure on the fiscus,” Mboweni said in the interview.
In other news – Ntsiki Mazwai’s letter to President Cyril Ramaphosa shocks Mzansi
Former journalist and anti-apartheid activist Thami Mazwai has distanced himself and his wife from a scathing open letter written by his daughter Ntsiki to president Cyril Ramaphosa. Thami said he was “disappointed and shocked” at his daughter’s letter which accused Ramaphosa of among others “appeasing the white master” and “putting money ahead of your own people”. “I believe that all of you are aware of the high esteem in which I personally hold our government,” Thami said.
“The efforts by President Ramaphosa and his colleagues show their commitment to our people. I thus, on behalf of my wife and I distance us from the comments by Ntsiki.” He labelled his daughter’s comments as “not only unfortunate but uncalled for in a situation in which all of us must hold hands. Read more