By S’thembile Cele.
South Africa lifted its borrowing requirement in the current fiscal year by R54.2 billion, mainly to finance a domestic bond buyback program designed to smooth out redemptions.
The National Treasury estimated total borrowing at R434.2 billion in the year through March 2027, according to its medium-term budget review released in Cape Town on Wednesday.
That compares with R380 billion projected in February, but is a decline from the R551.2 billion raised in 2025-26.
The bond buyback programme is to be implemented in the current fiscal year and will help “to reduce elevated redemptions over the medium term,” the Treasury said.
A Treasury official told reporters market conditions would determine which maturities and issues were targeted for repurchase.
The largest share of the increase will be for domestic redemptions, it said, with cash balances being reduced by R11 billion to partially finance the gross borrowing requirement. Redemptions would average R250 billion over the medium term, the Treasury added.
To meet foreign-currency commitments, the government will raise about $15.5 billion over the medium term, or roughly $5 billion a year, and draw down on its foreign exchange balances.
South Africa has already raised $3.6 billion from multilateral development banks in the current fiscal year, of which $2 billion has been disbursed, it said.
Treasury Director-General Duncan Pieterse said concessional financing would be prioritised before the government turned to the eurobond market.