Limited room to manoeuvre as Mboweni faces mammoth task to revive SA economy
Nine years after leaving his post as governor of the South African Reserve Bank, Tito Mboweni is has been appointed as the nation’s finance minister and faces the unenviable task of reviving an economy that’s mired in recession. He’ll have limited room to manoeuvre.
With government debt at already dangerously high levels and the country at risk of losing its sole remaining investment-grade credit rating from Moody’s Investors Service, Mboweni will have little option but to stick to the National Treasury’s expenditure ceilings and deficit-reduction targets. His ability to stimulate growth through increased spending or tax breaks will also be curtailed.
Mboweni, 59, succeeds Nhlanhla Nene, who was named finance chief by President Cyril Ramaphosa in February and resigned on Tuesday after lying about his meetings with three businessmen who were implicated in the looting of state funds. Nene’s predecessor, Malusi Gigaba, had raised taxes and cut spending in the February budget, warning that the state’s coffers were bare.
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