B2B Central

MTBPS 2019

31 Oct 2019

In wake of MTBPS, global wealth manager reissues call for South Africans to take 80% offshore

By Janice Roberts

In October 2018, Austen Morris Associates, a global wealth manager with offices around the world including Europe, China, across Africa, South Africa and the US, warned South Africans to invest with their heads and not their hearts and take 80%, or more, of investable funds offshore to preserve their wealth. 
30 Oct 2019

MTBPS highlights the crocodile jaws closing around SA’s economy

By Janice Roberts

Calling a spade a spade, Finance Minister Tito Mboweni’s Medium Term Budget Policy Statement (MTBPS) was refreshingly honest about the precarious situation the country now finds itself in, and the severe challenges we face. Most notably, he was candid about South Africa’s dire situation: we are effectively facing crocodile jaws that are widening to swallow...
30 Oct 2019

MTBPS 2019: No, Minister Mboweni, This is Not Enough!

By Janice Roberts

Finance Minister Mboweni presented his Medium Term Budget Policy Statement (MTBPS) today.  “Rather than giving taxpayers the comfort that was sought, there is widespread frustration and indignation following this presentation,” says Patricia Williams, tax partner at Bowmans.
30 Oct 2019

MTBPS 2019: Bond market reaction

By Janice Roberts

By Albert Botha, head of fixed income portfolio management at Ashburton Investments.  The combination of the lower inflation rate at 4.1% yoy and the negative market reaction to a somewhat disappointing budget has driven the real yield on the SA 10 year bond to over 5%. This is compares very favourably to peers such as...
30 Oct 2019

MTBPS 2019: Agriculture left high and dry

By Janice Roberts

Agri SA is disappointed with the Medium-term Budget Policy Statement (MTBPS) that was delivered by the Minister of Finance, Tito Mboweni in Parliament today. “Whilst the MTBPS does not include detailed spending plans or tax proposals[1], the Minister could have given more recognition to the role of the agricultural sector and the sector’s resilience in...
30 Oct 2019

MTBPS 2019 highlights the unsustainability of the debt trajectory

By Janice Roberts

By Isaah Mhlanga, Executive Chief Economist at Alexander Forbes. Highlights  Economic growth and inflation rates revised significantly lower.  Tax revenue collection shortfall of R52bn in 2019/2020.  Debt to GDP ratio rises above 70% over the medium term and continues to rise thereafter.  Moody’s will likely change the outlook from stable to negative...
30 Oct 2019

MTBPS confirms grim nature of fiscal challenge facing SA

By Janice Roberts

Given the domestic and global headwinds facing the SA economy, the MTBPS strongly shifts the narrative towards recognizing the grim nature of the fiscal crisis that has to be addressed in SA. That’s the word from NWU Business School Economist, Professor Raymond Parsons.
30 Oct 2019

Treasury to again see a significant revenue shortfall by end of financial year

By Janice Roberts

During the 2019 Medium-Term Budget Policy Statement, delivered on Wednesday 30 October, Minister of Finance, Tito Mboweni, confirmed that Treasury would once again see a significant revenue shortfall by the end of the financial year. With this year’s revenue gap predicted to be around R53 billion, the Minister’s report on the state of revenue collections...
30 Oct 2019

MTBPS laden with rhetoric but short on spending cut details

By Janice Roberts

By Nazmeera Moola, Head of SA Investments, and Sisamkele Kobus, Analyst, Fixed Income, Investec Asset Management. Finance Minister Tito Mboweni’s second Medium-Term Budget Policy Statement (MTBPS) paints a stark financial picture. The consolidated deficit numbers for next year, the 2020/21 fiscal year, have risen from a projection of 4.3% in the February 2019 Budget to...
30 Oct 2019

'A macabre Medium-Term Budget Policy Statement'

By Janice Roberts

By PwC Strategy& economists Lullu Krugel & Christie Viljoen. Finance Minister Tito Mboweni delivered a macabre Medium-Term Budget Policy Statement (MTBSP) to Parliament on October 30. The MTBPS communicates to government and the people the economic context of the country and fiscal spending priorities over the coming three years. (It does not include detailed spending...
29 Oct 2019

Building an inclusive economy - perspectives on the MTBPS 2019

By Janice Roberts

Finance Minister Tito Mboweni has a tough task ahead of him as he seeks to present this year’s Medium-Term Budget Policy Statement (MTBPS). Against a backdrop of inter alia weak economic growth and state-owned enterprise (SOE) bailouts, the MTBPS could provide much needed clarity on how South Africa’s proposed economic growth strategy will be progressed.