SA debt soars 250% while GDP is up only 105%

The annual medium-term budget policy statement (MTBPS) announcement in October is an important event at which the National Treasury offers insights into the health of the public purse.

- Ryk van Niekerk

The main February budget is much more short-term focused, but over the past decade, the country's financial problems have migrated from short-term to long-term.

Ten years ago, in 2014, South Africa's total debt was R1.6 trillion or 43% of GDP. In 2024, it rose to R5.6 trillion or 75% of GDP. This represents a spike in total debt of 250% in a decade.

Debt is not necessarily bad if used to invest in future prosperity. This did not happen. In 2014, South Africa's GDP was R3.6 trillion, which rose to R7.4 trillion in 2024, an increase of only 105%.

There are many reasons, but the most pronounced are state capture, corruption, poor leadership and ineffective spending.

It is a disastrous legacy for our children and their children, as they will have to repay this debt.