JOHANNESBURG – Nigeria cannot depend upon austerity measures to scale back public debt and boost economic growth, as previously thought, Finance Minister Pravin Gordhan said on Tuesday.
Gordhan may be seeking a balance between reining in spending to contain South Africa’s budget deficit to avoid credit score downgrades, whilst finding methods to boost economic growth and offer basic services on the poor.
“What’s very clear is usually that austerity, which we using some portions of the G20 thought was crucial … is not really the result,” Gordhan told business leaders.
“In South Africa, too, we’ve got some austerity fans amongst our public commentators and time for them to rethink.”
Africa’s most developed economy is barely growing from drop in commodity prices crippled the mining sector, a couple of drought hammered farming output and policy uncertainty spooked investors.
The ruling African National Congress will face tons of competition in local elections in the near future with parties campaigning on offers to tackle high unemployment and deliver better lives for countless poor people.?
