South Africa may increase its borrowing plans following the latest bailout announced for struggling state-owned power utility Eskom, finance minister Tito Mboweni told MPs on Tuesday.
Browsing: Tito Mboweni
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.
South Africa’s largest labour federation is prepared to discuss reducing workers at the nation’s power utility if it’s given proof of overstaffing and that job cuts would save Eskom.
Less than a week after the CEO of Eskom declared “the days of surprises are over”, documents show the government was forced to pay R5-billion in emergency funds so the utility could meet obligations.
The conventional wisdom is that a major restructuring of Eskom will address the crisis facing that state-owned utility and the country. But this is misleading.