South Africa doesn’t have to reinvent the wheel

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South Africa is entering a new era of coalition politics, and an effective government can help reduce interest rates.

South Africa is entering a new era of coalition politics, but the new government will not have to change much as the country is already on the right trajectory.

Although the GNU did not shift into a populist or leftist direction, the survival of the centrist “coalition” is still in question. “Importantly, these include respect for the Constitution , the need for faster economic growth and social uplift, evidence-based policymaking, and abolishment of an impartial and professional civil service.”

Moreover, fiscal consolidation has been underway and will likely continue, even if the GNU causes some shifts.The government also posted a small primary budget surplus in the 2023/24 fiscal year, meaning that tax revenue exceeded non-interest spending for the first time in 15 years. This is a key step towards changing the trajectory of public debt, which stood at R5.2 trillion at the end of the first quarter.

 

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