Finance minister Tito Mboweni says government borrowing will surge and taxes may rise to fund the troubled Eskom. Yet no plan has been announced to restructure the overstaffed company.
Browsing: Tito Mboweni
A financial crisis confronting South Africa’s state power utility has become a national debt problem.
South Africa will ramp up support for its ailing state-owned power utility Eskom with an additional R59-billion spread over two years.
Transport minister Fikile Mbalula says there are no easy solutions to the demand that e-tolling in Gauteng be scrapped.
President Cyril Ramaphosa said government will soon give the embattled state power utility “a significant portion” of the R230-billion it needs over the next decade to remain solvent.
South Africa has no option but to increase financial support for Eskom even while pushing for reforms at the stricken state-owned power utility, according to national treasury director-general Dondo Mogajane.
As speculation swirls about plans to deal with Eskom’s crippling debt load, one group of stakeholders hasn’t been consulted: owners of the company’s R243-billion of bonds.
The news this week that government has again kicked the spectrum licensing can down the road is further evidence that it isn’t taking the needs of the sector seriously enough.