JOHANNESBURG, 6 November 2020 – Opposition within the ruling ANC (African National Congress) may jeopardize the bailout South Africa was has been expecting to receive from the International Monetary Fund (IMF).
ANC hardliners close to former president, Jacob Zuma, are vehemently opposed to any deal with the Washington-based global financier of last resort.
Only this year, South Africa has received $4.3 billion in emergency financing from the IMF and President Cyril Ramaphosa is banking on a bailout to finance the country’s recovery from some of the most harmful effects of the new coronavirus.
At a press conference on Tuesday, 3 November 2020, Ramaphosa showcased a series of infrastructure project for which he said South Africa seeks $13.3 billion (210 billion South African rand) in funding.
Mr. Ramaphosa’s Economic Reconstruction and Recovery Plan is projected to boost investment to around 23 percent of GDP by 2024.
More funding from the IMF would bury Africa’s second biggest economy, after Nigeria, deeper into debt.
A bailout is seen as desperately needed with the South African gross economic product (GDP) expected to fall by 8 percent this year.
Mr. Zuma is under investigation for corruption by the government of Mr. Ramaphosa.
Mr. Zuma has been summoned to appear before a commission of inquiry from November 16 through November 20.
The case accuses Mr. Zuma of enabling his associates to pilfer state funds.
Mr. Zuma and his associates have denied any wrongdoing.