Get more Mail & Guardian
Subscribe or Login

Minister defends South Africa’s $2-billion IMF loan

“This pledge by Brics countries is in line with the provision to transform institutions of global governance,” she told the ANC Progressive Business Forum Brics colloquium, ahead of the party’s four-day policy conference in Midrand.

“It has been a tradition … that decisions in international financial institutions are made and influenced by countries with strong financial muscles.

“In this regard the more we contribute financial resources to such institutions, the better the chance and prospects for us as a country to influence decisions.”

President Jacob Zuma made the commitment of $2-billion to the International Monetary Fund at the G20 summit, a meeting of the world’s greatest economies, in Los Cabos, Mexico, last week.

The money would be loaned for an IMF “firewall” meant to prevent future financial crises.

Cosatu and the ANC Youth League, among others, criticised the move, saying the money could have been better spent on domestic problems.

Emerging markets
In total, the members of Brics – Brazil, Russia, India, China and South Africa – had contributed $75-billion to the IMF fund.

“The Brics pledges were contingent on the completion of the quota review to … better reflect the relative weights of IMF members in the world economy,” Nkoane-Mashabane said.

The countries’ weighting had changed given the strong GDP growth in emerging markets and developing countries, she said.

The minister said it was time South Africans took advantage of the Brics membership.

“We should stop asking the question now as to what the hell is South Africa doing in Brics,” she said.

“We should now be focusing on what should business be doing to take advantage of South Africa’s membership in Brics, and opportunities abound.”

Earlier, ANC treasurer general Mathews Phosa echoed her sentiments to the business colloquium.

Private sector
“Whenever our leaders sit … and sign agreements … it becomes important that we as private sector should make follow ups, should network, should do the deals.”

He called for emerging markets to determine their own futures and set up their own institutions.

“[There] is a growing view that emerging economies should shape their own future, create their own institutions.”

This would be fleshed out at the colloquium and over the next few days at the policy conference.

He said Brics was a “major force to be reckoned with”.

The Brics grouping accounts for more than 40% of the world gross domestic product.

The ANC policy conference would debate and decide new policies. These would then be confirmed at the party’s elective conference in Mangaung in December. – Sapa

Subscribe for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Gillian Jones
Guest Author

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

‘The children cannot cope any more’: Suicide in Calvinia highlights...

How Covid-19 has intensified the physical and emotional burdens placed on children’s shoulders.

Capitec Bank flies high above Viceroy’s arrow

The bank took a knock after being labelled a loan shark by the short seller, but this has not stymied its growth

More top stories

The convenient myth of an Africa spared from Covid-19

There are few, if any, studies to support Pfizer chief executive’s assertion that the global south would be more vaccine-hesitant than the north

Council wants Hawks, SIU probe into BAT’s Zimbabwe scandal

The cigarette maker has been accused of giving up to $500 000 in bribes and spying on competitors

How Alpha Condé overthrew Alpha Condé

Since the coup d’état, Guinea’s head of state has been in the custody of the military officers. But it was the president who was the primary architect of his own downfall
Advertising

press releases

Loading latest Press Releases…
×