Browsing: public sector

However, long-term trends, assessed in decades rather than years, demonstrate that African countries are becoming increasingly appealing as investment locations. All of this is taking place in the world’s last demographic dividend region: Sub-Saharan Africa will soon be the only place on the planet with birth rates at or above replacement level. Telecommunications platforms, agribusiness, and energy are all emerging as new value chains.
However, the shift away from extractive sectors isn’t solely due to improved investment climates in Sub-Saharan Africa – extractives, for example, account for a lesser portion of total investment, but the rate fluctuates in reaction to oil prices. Other countries in the Global South have advanced, resulting in increased labour costs and mature consumer markets, implying reduced long-term profits.…

South Africa’s Finance Minister Tito Mboweni budget speech brought strength to the nation’s currency, rand—after proposing cuts to the controversial public sector wage bill, on February 26.

According to information from Reuters, financial markets seemed to appreciate the move, which posed a threat to South Africa’s public finances.

At 0650 GMT, the South African rand traded at 15.2550 versus the dollar, which is 0.4 per cent stronger than its previous close.

According to a South African financial publication, Moneyweb, Minister Mboweni expects the public sector wage bill to reduce by $2.4 billion in 2020/21, $3.5 billion in 2021/22, and $4.4 billion in 2022/23.

Further, In the 2020 budget review policy document, National Treasury said the medium-term reductions in the wage bill will target public servants in the national and provincial departments and state-owned enterprises (SOEs) that delight unfettered access to taxpayer-funded government bailouts.

On the meanwhile, the scenario has been …