Roy Havemann, principal of financial sector policy and public economics at Krutham, joined Moneyweb@Midday with Jeremy Maggs to discuss the challenging economic conditions in South Africa, focusing on the country’s growing debt-to-GDP ratio and the impact of interest rates exceeding economic growth.

“Treasury has communicated on a number of occasions that they really would like to stabilise debt and I think they are hamstrung by this growth problem. I think if the economy is growing at zero, then it’s very difficult for the Treasury to make any major fiscal advances because there simply isn’t more money coming into revenue and they’re left with very difficult choices,” says Roy Havemann.

Listen to the full clip below.