IMF says South Africa at risk if economic reforms don’t materialise fast

JOHANNESBURG (Reuters) – South Africa faces a prolonged period of weak economic growth marked by rising unemployment, inequality and greater credit-rating risk if the government does not act fast to implement reforms, the International Monetary Fund (IMF) said on Monday.

“The FY20/21 budget to be presented in February should articulate measures to address fiscal and SOE challenges and stabilize government debt,” the global lender said in statement at the conclusion of a 2-week, Article IV visit to the country.

“Failure to implement the needed adjustment in government and SOE (state-owned entities) spending and efficiency will worsen debt dynamics, erode financial stability, and further raise the country risk premium.”

Reporting by Mfuneko Toyana; Editing by Mark Heinrich