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OVERVIEW. Relative to the 2023 Budget, government’s gross borrowing requirement in 2023/24 has increased by R37.6 billion to an estimated R553.1 billion, or 7.8 per cent of GDP. This increase is due to lower revenue collection and higher spending.
Nevertheless, South Africa’s deep capital markets, and its improved fiscal and debt position, have helped to cushion rising risks associated with tightening monetary policy and a slowing global economy. Moreover, South Africa’s foreign debt remains a relatively small share of its overall borrowings. In
South Africa’s debt to GDP ratio could be up to 1.6 percentage points higher over medium term. As this is only a temporary measure, use of the GFECRA needs to be coupled with managing key expenditure risks going forward and strong economic growth to drive revenue collection.
Government is staying the course on the fiscal strategy outlined in the 2023 Medium Term Budget Policy Statement (MTBPS) and will achieve a primary budget surplus in 2023/24, with debt stabilising by 2025/26. Debt‐service costs will peak as a share of revenue in 2025/26 and decline thereafter.
Calculating the optimal capital structure involves finding the combination of debt and equity financing that minimizes the company's weighted average cost of capital (WACC) while maximizing its value.
9 sie 2024 · This research tackles a gap in existing literature by offering empirical insights into the effectiveness of utilizing the Gold and Foreign Exchange Contingency Reserve Account (GFECRA) in overseeing total domestic debt, thereby enhancing our comprehension of fiscal policy implications and debt management strategies in South Africa.
Capital structure optimization: a model of optimal capital structure from the aspect of capital cost and corporate value. Eleonora Kontuš. , Kristina Šorić. & Nataša Šarlija. Article: 2147565 | Received 10 Apr 2021, Accepted 08 Nov 2022, Published online: 05 Dec 2022. Cite this article. https://doi.org/10.1080/1331677X.2022.2147565.
