INTERNATIONAL FINANCIAL INSTITUTIONS’ COVID-19 LENDING IN SOUTH AFRICA: CONTEXT, CONTENTIONS AND POLICY IMPLICATIONS

The report analyzes R141 billion in pandemic-related loans from the IMF, World Bank, New Development Bank (NDB), and African Development Bank (AfDB). While these loans were cheaper than market-issued debt, the authors find they were approved opaquely and often carried conditionalities that pushed South Africa toward fiscal consolidation and privatization. The report highlights a lack of gender-responsive budgeting and human rights impact assessments, noting that austerity measures have negatively impacted social grants and public services. It recommends that all future IFI loan agreements and their projected costs be tabled in Parliament and subjected to human rights impact assessments.

• South Africa borrowed approximately R141 billion from IFIs during the pandemic, with total long-term interest payments estimated at R29 billion.
• The World Bank's Development Policy Operation (DPO) loan included legally binding conditionalities, some of which were unrelated to the pandemic, such as requiring the approval of the National Climate Change Bill and opening the electricity sector to private players.

APA

Ramburuth, K., Mncube, Z., Mahafu, V., & Isaacs, G. (2023). INTERNATIONAL FINANCIAL INSTITUTIONS’ COVID-19 LENDING IN SOUTH AFRICA: CONTEXT, CONTENTIONS AND POLICY IMPLICATIONS. Institute for Economic Justice. https://iej.org.za/wp-content/uploads/2026/02/IEJ-IFI-report-June2023.pdf

Chicago

Ramburuth, Kamal, Zimbali Mncube, Vuyisiwe Mahafu, and Gilad Isaacs. INTERNATIONAL FINANCIAL INSTITUTIONS’ COVID-19 LENDING IN SOUTH AFRICA: CONTEXT, CONTENTIONS AND POLICY IMPLICATIONS. Institute for Economic Justice, 2023. https://iej.org.za/wp-content/uploads/2026/02/IEJ-IFI-report-June2023.pdf.

Wikipedia

{{cite report |last1=Ramburuth |first1=Kamal |last2=Mncube |first2=Zimbali |last3=Mahafu |first3=Vuyisiwe |last4=Isaacs |first4=Gilad |title=INTERNATIONAL FINANCIAL INSTITUTIONS’ COVID-19 LENDING IN SOUTH AFRICA: CONTEXT, CONTENTIONS AND POLICY IMPLICATIONS |publisher=Institute for Economic Justice |date=May 2023 |url=https://iej.org.za/wp-content/uploads/2026/02/IEJ-IFI-report-June2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ramburuth2023international, author = {Ramburuth, Kamal and Mncube, Zimbali and Mahafu, Vuyisiwe and Isaacs, Gilad}, title = {{INTERNATIONAL FINANCIAL INSTITUTIONS’ COVID-19 LENDING IN SOUTH AFRICA: CONTEXT, CONTENTIONS AND POLICY IMPLICATIONS}}, institution = {Institute for Economic Justice}, year = {2023}, month = may, url = {https://iej.org.za/wp-content/uploads/2026/02/IEJ-IFI-report-June2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }