South Africa Knowledge

Question 1

What monetary policies have been used?

Answer 1

South African Reserve Bank (SARB) reduced interest rates from 8% (Nov 2024) to 7.5% (Jan 2025)

Question 2

What fiscal policies have been used?

Answer 2

VAT rising 0.5% each year, being 15% in 2024 to most goods/services to gain gov rev but worsen inequality
But 0% VAT on basic necessities to support low income households

Question 3

What market based policies have been used?

Answer 3

Labour Market reforms: Simplifying hiring/ firing regulations (2023) to decrease unemployment (32.1%) and improve external numerical labour flexibility

Question 4

What interventionist policies have been used?

Answer 4

Renewable Energy Independent Power Producer Procurement Program (REIPPP) - since 2011, $14bil for renewable energy projects

Question 5

5 key stats

Answer 5

Gini coeff - 0.63
Unemployment - 32.1% (2024)
Debt - 72.2% of GDP
Only 7.1mil people (12% population) pay tax
18% drop of Rand vs USD (2020-2024)