Eskom will receive R254-billion in debt relief over the next three years, provided it partially privatises the country’s electricity transmission network and coal-fired power plants.
Browsing: Enoch Godongwana
Government plans to take on more than half of Eskom’s debt burden over the next three years to help strengthen its balance sheet, operations and enable it to restructure.
Investors in Eskom are on high alert for finance minister Enoch Godongwana’s plan to reorganise its mountain of debt.
Finance minister Enoch Godongwana faces the task of incorporating a credible debt-relief plan for Eskom in the national budget while stabilising government finances.
President Cyril Ramaphosa will deliver his seventh state of the nation address on Thursday at a parlous juncture in his tenure.
High hopes that government will soon lay out plans to take on a majority of Eskom’s debt have lifted the company’s bonds.
South Africa has a plan to improve energy provision that will end the need for any power cuts within the next 12-18 months, Enoch Godongwana said.
Government will take on a portion of Eskom’s debt in a staggered manner to avoid a spike in the country’s debt-to-GDP ratio.
The South African Reserve Bank said there had been no impact from a reported breach of its systems four months ago.
President Cyril Ramaphosa will need to exercise leadership of the highest order to push through the reforms he announced in October.