Streaming issues? Report here
702 logo Gradients 702 logo Gradients
Best of 702
22:00 - 00:00
volume_up
volume_mute

Up Next: Early Breakfast with Africa Melane
See full line-up
Best of 702
22:00 - 00:00
Home
arrow_forward
Politics
fiber_manual_record
Business

Why SA borrowing from IMF may not be a good idea

20 December 2018 10:19 AM
Tags:
Money
IMF
SA
bailout

University of Pretoria's Professor Daniel Bradlow explains why South Africa should not borrow money from the IMF.

After International Monetary Fund's (IMF) Director, Christine Lagarde added South Africa to her annual African tour, there has been speculation as to why she included it in her visit.

Lagarde met with President Cyril Ramaphosa and the Reserve Bank Governor Lesetja Kganyago to speak about South Africa's economic reforms.

Read: IMF bailout: What it is (and whether South Africa will soon need one)

Questions are being asked as to whether South Africa is seeking a loan from the IMF.

Pretoria University's Professor Daniel Bradlow says the reasons countries make use of the IMF, is to get financial support when they have a balance of payments problem.

You go to the IMF to deal with that problem. When the IMF gives that money, like any lender they insist on conditions to be attached to that. In the case of the IMF, their conditions are usually policy conditions.

Professor Daniel Bradlow, International Development Law and African Economic Relation, University of Pretoria

This means that the government's room for making its own policies would be limited. The conditions the IMF attaches to money borrowed can be very controversial in many countries, he explains.

Bradlow believes that because of the many IMF conditions, borrowing money from it is bad news for any country. He also adds that the IMF's history in African countries has not been good as these countries end up being dependent on the IMF.

Listen below to hear the professor explain what borrowing money from the IMF could mean for SA:


20 December 2018 10:19 AM
Tags:
Money
IMF
SA
bailout

More from Politics

mbowenibudgetspeech124

All PPE contracts must be published - Mboweni

5 August 2020 6:32 PM

Treasury said that government departments would no longer be allowed to choose suppliers and would have to resort to open tender processes in awarding contracts for PPE and COVID-19-related goods and services.

Share this:
Read More arrow_forward

pule mabe

ANC acts and deals with wrongdoing within its own ranks at all times - Mabe

5 August 2020 1:58 PM

Spokesperson Pule Mabe reflects on the resolutions taken by the NEC to deal with its corrupt members.

Share this:
Read More arrow_forward

Zimbabwe map flag 123rfpolitics 123rf

'Ramaphosa as chair of AU needs to speak out against what is happening in Zim'

5 August 2020 9:15 AM

MDC Alliance treasurer general Senator David Coltart says he is concerned by the silence by South Africa and SADC.

Share this:
Read More arrow_forward

200728andrewgif

'ANC in trouble with corruption and public needs criminal justice to take place'

5 August 2020 7:32 AM

Daily Maverick associate editor Ferial Haffajee reflects on the major corruption scandals involving the governing party.

Share this:
Read More arrow_forward

Serveusprotest_1352

Impact of divestment will be dire - we need govt action to restore trust in SA

4 August 2020 6:49 PM

'You have to wonder, where is leadership in our society now?' Bruce Whitfield interviews the CDE's Ann Bernstein.

Share this:
Read More arrow_forward

cosatu-strikejpg

'ANC has never taken Cosatu seriously,' says analyst on support pullout threat

4 August 2020 6:48 PM

Ralph Mathekga reflects on Cosatu's threat to pull support from Ramaphosa's administration if corruption is 'left unchecked'.

Share this:
Read More arrow_forward

Electricity load shedding power outages 123rfpolitics 123rf

It is scandalous for Eskom to say I participated in corrupt activities - Koko

4 August 2020 11:25 AM

The power utility's former head of generation and others are being taken to court to recoup R3.8-billion lost to corruption.

Share this:
Read More arrow_forward

Public Protector Busisiwe Mkhwebane

Busisiwe Mkhwebane to investigate COVID-19 related corruption

4 August 2020 8:02 AM

The Public Protector says her office cannot just sit and watch the country burn due to unscrupulousness dealings.

Share this:
Read More arrow_forward

Candle Eskom 123rf 123rfbusiness 123rflifestyle

Eskom wants its stolen money back – from Koko, Molefe, Singh, etc and the Guptas

3 August 2020 6:27 PM

The process to recover the looted billions has begun. Bruce Whitfield talks to Steven Powell, Director in Forensics at ENS Africa.

Share this:
Read More arrow_forward

20200803normagigabaoutsidecourtjfif

This is intimidation, this is a way to silence Norma Gigaba - Advocacy group

3 August 2020 4:40 PM

EWN reporter Veronica Mokhoali says Wise 4 Africa supports Norma amid malicious damage to property and crimen injuria charges.

Share this:
Read More arrow_forward

More from Business

afrika-tikkunjpg

SA needs 'the Madiba compassion' more than ever now, says Afrika Tikkun CEO

5 August 2020 8:54 PM

Marc Lubner on the NGO's programmes for young South Africans and how working with Nelson Mandela inspired his life's work.

Share this:
Read More arrow_forward

car insurance short-term cover 123rfbusiness 123rflifestyle 123rf

Why it's a bad idea to ditch or downgrade your car insurance to save on costs

5 August 2020 8:21 PM

Involved in an accident you didn't cause? Third party claims don't pay out much. Wendy Knowler shares one driver's horror story.

Share this:
Read More arrow_forward

liberty-ceo-david-munrojpg

Liberty reports R2.2b loss amid pandemic, but 'capital ratio remains strong'

5 August 2020 7:53 PM

Liberty's David Munro tells The Money Show its R3b pandemic reserve shows the insurer 'truly living out its purpose'.

Share this:
Read More arrow_forward

Crisis just ahead dark clouds thunderstorm 123rf 123rfbusiness

A warning for the future, we do not think enough about our actions

5 August 2020 7:15 PM

Despite being one of the few animals that think about the future, we don’t think far enough

Share this:
Read More arrow_forward

up-3765609-1920jpg

JSE closes at highest level for 2020 with surge in demand (mid-pandemic!)

5 August 2020 6:49 PM

The Money Show's Bruce Whitfield interviews Johannesburg Stock Exchange boss, Leila Fourie.

Share this:
Read More arrow_forward

mbowenibudgetspeech124

All PPE contracts must be published - Mboweni

5 August 2020 6:32 PM

Treasury said that government departments would no longer be allowed to choose suppliers and would have to resort to open tender processes in awarding contracts for PPE and COVID-19-related goods and services.

Share this:
Read More arrow_forward

gym-exercise-fitness-treadmill-equipment-health-club-weights-running-run-123rf

Fitness industry stages protests: 'We are teetering and must open now'

5 August 2020 5:10 PM

Fit SA spokesperson Grant Austin says 48% of gyms won't be able to reopen if the industry does start operating soon.

Share this:
Read More arrow_forward

absajpg

Absa wins international award for its response to Covid-19

5 August 2020 11:38 AM

The bank is one of only six in the world to be recognised in this way for outstanding performance during the global health crisis.

Share this:
Read More arrow_forward

nike-adpng

[WATCH] Why Nike's new tv advert is 'absolutely extraordinary'

4 August 2020 8:09 PM

Nike's hit the mark, again, with its latest tv ad campaign. Branding expert Andy Rice awards it this week's hero's rating.

Share this:
Read More arrow_forward

tile-707888-1920jpg

Cashbuild acquires Pepkor's building company for just over R1b

4 August 2020 7:39 PM

'We still believe in the future of the economy' - CEO Werner de Jager explains why Cashbuild is taking on debt to clinch the deal.

Share this:
Read More arrow_forward