Earlier this week the International Monetary Fund (IMF) was in the country for its bi-annual African economies tour.
IMF MD Christine Lagarde held a media briefing in Pretoria this week with Reserve Bank Governor Leseja Kganyago, to unpack how she thought the country’s economy was doing.
One of the most significant talking points during the briefing was when Lagarde stated that a loan to South Africa is currently not on the cards.
This comes as president Cyril Ramaphosa continues to attract international firms to invest over $100 billion into the local economy over the next five years.
“I’m confident that President Ramaphosa has his eyes on the right objectives and is very focused on what he wants to develop for the country, together with his team,” said Lagarde during the media briefing.
Additionally Lagarde noted that the IMF will not offer a loan to Eskom even if they were approached to do so, as their organisation only deals with members and not private or public companies. Lagarde states that they have been assured by the administrative team of the President that the country is working hard to root out corruption.
“It is critically important to have institutions that are strong, have depth and determination to actually conduct that kind of exercise, eliminating leakages,” she adds.
According to Lagarde the IMF will continue to monitor South Africa‘s efforts to rehabilitate the economy.