Economic Realities Versus the #FeesMustFall Movement

This research paper analyzes the economic constraints facing South Africa in the context of the #FeesMustFall student protests, specifically examining the 2015 Medium Term Budget Policy Statement (MTBPS). It details the government's struggle with rising debt, low growth, and the competing financial demands of social spending, infrastructure, and energy security.

• South Africa faces significant macroeconomic challenges, including low global and national economic growth, high unemployment and inequality, a devalued currency, and an inflated public sector and state-owned enterprises.
• The South African government is managing a worrying debt-to-GDP ratio of 47%, which is projected to reach 49.4% by 2018/2019. According to the Bank of International Settlements, South Africa had the highest government debt among 14 emerging economies since the end of 2007.
• Government spending is heavily pressured by social grants and a public sector salaries and benefits bill that grew by 10.1% in 2015. However, the fastest-growing cost is the servicing of government debt, which is expected to grow by an average of 10.9% in the medium term.
• The government has identified several critical infrastructure and energy priorities, including R11 billion for tertiary education capital expenditure and R23 billion from Vodacom share sales for the recapitalisation of Eskom. The Renewable Energy Independent Power Producer Programme has attracted R193 billion in private investment and added 6,327 MW to the grid.
• South Africa is pursuing regional integration through projects such as a project preparation facility for the Southern African Development Community and feasibility studies to access hydropower in Mozambique, as well as a rail project linking Zambia, Angola, and the Democratic Republic of Congo.

APA

South African Institute of International Affairs (2015). Economic Realities Versus the #FeesMustFall Movement. https://saiia.org.za/research/economic-realities-versus-the-feesmustfall-movement/

Chicago

South African Institute of International Affairs. Economic Realities Versus the #FeesMustFall Movement. 2015. https://saiia.org.za/research/economic-realities-versus-the-feesmustfall-movement/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Economic Realities Versus the #FeesMustFall Movement |date=23 October 2015 |url=https://saiia.org.za/research/economic-realities-versus-the-feesmustfall-movement/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2015economic, author = {{South African Institute of International Affairs}}, title = {{Economic Realities Versus the \#FeesMustFall Movement}}, institution = {South African Institute of International Affairs}, year = {2015}, month = oct, url = {https://saiia.org.za/research/economic-realities-versus-the-feesmustfall-movement/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }