South Africa: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for South Africa

IMF Staff Country Reports, July 28, 2020

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Canonical URL: South Africa: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for South Africa

The COVID-19 outbreak is leading to a sharp economic contraction and creating significant financing needs in South Africa.
The IMF approved US$4.3 billion in emergency financial assistance under the Rapid Financing Instrument (RFI) to support the authorities’ efforts in addressing the challenging health situation and severe economic impact of the COVID-19 shock.
Once the pandemic is behind, there is a pressing need to ensure public debt sustainability and implement structural reforms to support the recovery and achieve sustainable and inclusive growth.

COVID-19 is the primary driver of the sharp economic contraction and heightened financing needs.
Emergency financing of US$4.3 billion was provided under the RFI to address immediate health and economic challenges.
Post-pandemic priorities include:
- Ensuring public debt sustainability.
- Implementing structural reforms to underpin recovery and promote sustainable and inclusive growth.

Use RFI resources to support the health response and mitigate severe economic impacts from the COVID-19 shock.
After the health crisis subsides, prioritize:
- Fiscal strategies to restore and maintain public debt sustainability.
- Structural reforms targeted at supporting recovery and achieving sustainable and inclusive growth.