Tax & Spend

South Africa’s Central Bank Warns ANC Over Spending Risks

South Africa’s ruling party faces a tough election next year
Inflation falling but government bond yields remain elevated

Lesetja Kganyago
Photographer: Waldo Swiegers/Bloomberg

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By S'thembile Cele and Ntando Thukwana

September 23, 2023 at 6:00 AM UTC

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South Africa is strapped for cash and the country’s central bank has a stern warning for the ruling African National Congress: You can’t spend your way out of trouble.

“Deteriorating fiscal risks lead to higher interest rates,” Reserve Bank Governor Lesetja Kganyago said on Thursday after holding interest rates at 8.25%. “Foreigners will want to be compensated.”