National Treasury has attracted much interest from #NightTalk listeners in light of economic challenges experienced by the department, and issues which have affected its leadership.
Indeed, while interest rates have been a consistent feature in South African business news in the past years, the scrutiny South Africa has been under from rating agencies in the past year especially, and the performance of the country's state-owned enterprises (SOEs), has put under the spotlight the function of the country's National Treasury.
Treasury is a monster. The question is what doesn't happen at Treasury. Because they pretty much do policy development, and they do oversight on a lot of entities, they coordinate and facilitate the budgeting and a number of aspects that involve the overall purse of the government— Neo Leshabane, REPAID Capital Director
Neo Leshabane, REPAID Capital Director, joined Sizwe Dhlomo in studio to describe the function and work of National Treasury.
Leshabane is the first Chartered Accountant (CA) to qualify from the National Treasury CA Training Programme.
Treasury mostly finances the fiscus with bonds. Depending on what the sentiments around the country is, foreign and even local investors would demand more for the money. If they demand more it means we spend a lot more money serving these bonds. If they demand less, its good, because they're comfortable— Neo Leshabane, REPAID Capital Director
Listen to the conversation between Napo Leshabane and Sizwe Dhlomo:
We don't have enough to get by as it is. We rely mostly on foreign investment— Neo Leshabane, REPAID Capital Director
Leshabane described how National Treasury raises its capital, and how it is able to determine its budget.
He also contextualized the role of rating agencies, and why it would be in the best interest for a government to avoid a negative rating.
You can have five hundred million rating agencies, the investment fundamentals remain the same. Any investor will look into the fundamentals of what they are investing in— Neo Leshabane, REPAID Capital Director
Watch the full interview between Neo Leshabane and Sizwe Dhlomo: