Medium Term Budget 2023 - Cut Spending, South Africa Warned

South Africa is anxiously awaiting the medium term budget speech by Finance Minister Enoch Godongwana on Wednesday, November 1, 2023.

Godongwana has warned that the government needs to trim the Budget and cut down on the bloated civil service - a proposal not favourably received by the government or trade unions. The minister also said that the country will be penniless by April 2024, if a spending cut is not implemented, Eyewitness News reports.

The country faces high inflation and high petrol prices which impact the price of foodstuffs and a high unemployment rate, even though StatsSA reports a lowering of the figures, which stands at 32,9% - among the highest in the world.

The country has also been experiencing unprecedented flooding that has destroyed farmlands, homes and infrastructure. The worst-hit provinces, including KwaZulu-Natal, said there is no money to repair and provide housing for those worst affected.

Chicken farmers have been impacted by the spread of Avian flu, which is causing a shortage of chicken and eggs, also affecting neighbouring African countries.

National power outages (load shedding) and the crisis at power utility Eskom have also affected the economy and worsened the unemployment rate.