South Africa pays R2.5 trillion in debt costs as borrowing hits R3.8 trillion

A parliamentary reply has revealed that South Africa’s growing debt burden is placing increasing pressure on public finances, with the country having borrowed R3.81 trillion since 2017/18 while paying R2.53 trillion in debt-service costs over the same period. MK (uMkhonto weSizwe) Member of Parliament (MP) Sanele Greegory Mwali asked the Minister of Finance how much the government has borrowed since 2018 and how much has been paid in debt service costs. “Government’s total gross borrowing requirement over the period 2017/18 to 2025/26 (estimate) amounted to R3.81 trillion,”said Minister of Finance Enoch Godongwana.

“The total debt‑service cost over the period 2017/18 to 2025/26 (estimate) amounted to R2.53 trillion.” In simple terms, the country is spending more and more money on interest, without reducing the debt. This can suggest that servicing this debt leaves less money for healthcare, education, and infrastructure. The reply included the below breakdown showing debt‑service cost per financial year: In a separateparliamentary questionby MK MP Mariam Be Be Muhammad asked Godongwana how the government plans to tackle the rising national debt without compromising essential public services.

Godongwana said the 2026 Budget continues a balanced fiscal strategy that prioritises debt stabilisation, and support for economic growth and the most vulnerable. “Government’s medium-term fiscal strategy aims to stabilise the debt-to-GDP ratio in the current year and to reduce it through the rest of the decade by growing the main budget primary surplus,” he said. “Debt-service costs also peak in 2025/26 as a percentage of GDP and revenue.” He added that by achieving a primary budget surplus, the government is halting the “crowding out” of service delivery, ensuring that fiscal resources are redirected away from debt-service costs to the essential infrastructure and frontline services required for national development. “The 2026 Budgetis the first budget this decade in which debt-service costs grow slower than social spending and infrastructure investment,” Godongwana added.