Author: RMB Markets Daily

With the Medium-Term Budget Policy Statement (MTBPS) looming large this Wednesday, investors remain focused on South Africa’s fiscal position. It is against this backdrop that Finance Minister Enoch Godongwana’s speech on Friday evening at the annual Kgalema Motlanthe Foundation Inclusive Growth Forum in the Drakensberg was closely monitored. Standing firm in his stance on public finances in the face of criticism, Godongwana expressed concern about the shrinking fiscal space due to weak economic growth, rising public sector wages and reduced revenue from state-owned enterprises like Eskom and Transnet. He has been labelled “Mr. Austerity” by his critics but is willing…