Interesting Facts from the SA Debt Report
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The National Treasury recently released its Debt Management Report for 2024/25, providing detailing how government is borrowing and managing public funds. While it’s a technical document, it holds key insights that affect every accountant, especially those keeping an eye on risk, interest rates, and government policy direction. Below is a breakdown of the report’s key takeaways.
Government Borrowed Less Than Expected
South Africa’s borrowing needs dropped from an expected R457 billion to R415.7 billion, thanks to better-than-expected budgeting and lower debt repayments. That’s good news: less borrowing usually means more control over public finances.
Interest Rates Are Softening
After years of high interest rates, 2024 saw a shift to rate cuts both globally and locally. The SA Reserve Bank dropped the repo rate three times, giving some relief to businesses and households. This is critical to consider for accountants, as lower rates can affect borrowing costs, investment decisions, and client cash flow planning.
Load Shedding Eased — and So Did Risk
There was no load shedding between March 2024 and January 2025, helping restore business confidence. This stability, combined with a stronger political outlook after the 2024 elections, helped South Africa’s bond market perform better and boosted investor sentiment.
Foreign Investors Still Like SA Bonds
Foreigners still hold the largest share (25%) of SA government bonds. That continued interest helps keep capital flowing into the country, which is a positive sign for stability.
Accountants in Practice: Why This Matters
Retail Savings Bonds grew to R21.9 billion. These are ideal for clients looking for low-risk investments.
The government is exploring new funding tools, like green bonds and Islamic finance. This could create new advisory opportunities in the financial space.
We can expect more borrowing next year (R582 billion) due to a major bond maturing. This could impact interest rates, government spending, and possibly changes in tax policy.
Treasury is committed to keeping borrowing under control and managing risk. For accountants, that means keeping an eye on:
Interest rate trends
Government debt levels (especially when advising clients with public sector exposure)
New investment products from Treasury.
