The South African Reserve Bank published a data story in its September Quarterly Bulletin assessing how South Africa’s rising debt-service costs are absorbing a growing share of public resources, with interest payments increasing at an annual average rate of about 13.1% to ZAR 385.6 billion in fiscal 2024/25. Debt-service costs rose from 2% of gross domestic product in fiscal 2008/09 to over 5% in fiscal 2024/25 and have more than doubled as a share of total consolidated government spending since 2008. The analysis notes that debt-service costs are rising faster than spending on any other government service and exceed individual spending on health, economic affairs and housing. It also highlights a shift in the investor base for domestic government debt, with local investors holding about 75% in 2024, up from 60% in 2018, alongside an assessment that foreign investors’ pullback and higher risk premia have increased government borrowing costs. To manage debt, the data story points to National Treasury’s plan to introduce fiscal rules, alongside structural reforms.
South African Reserve Bank 2025-10-21
South African Reserve Bank data story highlights debt-service costs rising to ZAR 385.6 billion and taking a larger share of the budget
The South African Reserve Bank's September Quarterly Bulletin notes that South Africa's debt-service costs are consuming more public resources, with interest payments projected to reach ZAR 385.6 billion in fiscal 2024/25. Debt-service costs have risen from 2% of GDP in 2008/09 to over 5% in 2024/25, surpassing spending on health, economic affairs, and housing. The report also highlights a shift in the investor base for domestic government debt and outlines National Treasury's plan to introduce fiscal rules and structural reforms to manage debt.