Godongwana draws down R150bn from gold and forex account to reduce borrowings and debt-service costs

Finance Minister Enoch Godongwana unveiled a far-reaching reform in relation to government’s treatment of the Gold and Foreign Exchange Contingency Reserve Account (GFECRA), which will result in R150-billion in drawdowns from the account over the coming three years to reduce government borrowings. The settlements will be in three tranches, including R100-billion in 2024/25 and R25-billion apiece in the subsequent two financial years, and the proceeds will help reduce government’s gross borrowing requirement from R553.1-billion in 2023/24 to R428.5-billion in 2026/27.