Kganyago warns SA against reliance on mining windfalls

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Kganyago warns SA against reliance on mining windfalls
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South Africa’s central bank chief cautioned the government against relying on windfall taxes from high commodity prices to help service state debt and fund other short-term commitments. Moneyweb LesetjaKganyago

South Africa’s central bank chief cautioned the government against relying on windfall taxes from high commodity prices to help service state debt and fund other short-term commitments. The tax take in Africa’s most industrialised economy is on course to exceed estimates for a third consecutive year, with the National Treasury allocating 55% of the overrun toward reducing the budget deficit and borrowing requirements through the fiscal year ending March 2024.

” South Africa is the world’s biggest producer of platinum and manganese and a major exporter of gold. An index of industrial metals tracked by Bloomberg shows the rally in commodity prices spurred by China’s gradual reopening at the end of 2022 is fading.

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