The effects of the past
In 1994, the new democratic government of South Africa inherited an unsustainable budget deficit, rampant inflation (18.9% in 1991), depressed investor confidence, a mountain of debt and a currency crisis from the apartheid state. The previous regime had racked up debt to cope with the sanctions placed upon the country from the 1980s onwards and sustain the apartheid regime. In addition to high levels of debt, the new African National Congress (ANC) government had to table a budget that for the first time was aimed at providing adequate services to the entire country, including the majority population who had previously been wholly marginalised and underserved.
From 1994 to 2008, government policies…
