There has been speculation in the media that South Africa will seek to rescue its economy through a bailout from the International Monetary Fund (IMF).
“Do we qualify for an IMF bailout, or should we consider it?” asks Lullu Krugel, chief economist at PwC.
She doesn’t believe South Africa would qualify – and it hasn’t requested it either. In addition, more debt is not a good option, she adds, and the country is unlikely to make the reforms necessary to get such a bailout.
The IMF believes South Africa can solve its own problems with domestic solutions, Krugel adds. “I think we should be able to solve our own problems if the political will exists.”
In addition, the country does have ongoing non-crisis programmes with the IMF.
Overall, the probability of South Africa qualifying for or requesting an IMF bailout is very low, Krugel adds.