South Africa likely achieved a primary budget surplus — where revenue exceeds non-interest expenditure — for the first time in 15 years, setting it on a path to arrest further growth in debt that’s already worryingly high.
The positive data is a boon for the ruling African National Congress, which opinion polls show risks losing its majority for the first time since coming to power three decades ago in national elections on May 29 because of its mismanagement of the economy. The first primary surplus since the financial crisis offers a glimmer of hope that debt stabilization may be within reach, said Yvonne Mhango, Bloomberg Africa economist. “But for that goal to be attainable, this data point needs to be the start of a sustainable trend over the next few years,” she said.