Investor Presentaiton

Counter Cyclical Fiscal Policy Prudent macroeconomic policies provided SA with space for countercyclical fiscal policy Increase debt issuance post 2008 due to countercyclical policy stance Fiscal Priorities: Maintaining the expenditure ceiling Reducing the budget deficit • As economy begins to grow and expenditure restraint is maintained, the deficit is projected to narrow from 4.1 per cent in the 2014/15 fiscal year to 2.5 per cent of GDP by 2017/18 • Result is that net debt is projected to stabilise at 45.9 per cent of GDP in 2017/18 • Growth in 2014/15 expected to be 1.4% this year (revised down from 2.9%) due to work stoppages, labor disputes, electricity constraints and other supply side shocks It is expected to pick up to 3.0% in 2017 as the global outlook improves, confidence returns to the economy as constraints are relieved Budget Balance & Debt as a percentage of GDP Fiscal Year 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Percentage Change Actual Estimates Medium Term Estimates Real GDP Growth 4.6% 2.5% -0.9% 3.5% 3.3% 2.2% 2.0% 1.4% 2.5% 2.8% 3.0% Buget Balance % of GDP 1.0% -1.0% -6.6% -4.8% -3.7% -4.3% -3.9% -4.1% -3.6% -2.6% -2.5% Debt as % of GDP 23.3% 22.9% 27.4% 29.8% 33.2% 36.9% 39.7% 42.8% 42.8% 45.4% 45.9% Source: National Treasury national treasury Department: National Treasury REPUBLIC OF SOUTH AFRICA

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