12 °c
London
Friday, June 9, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Eskom a risk to South Africa as finances are getting worse: report

FurtherAfrica by FurtherAfrica
February 25, 2018
in Africa, Economy, Energy, Finance, South Africa
Reading Time: 2 mins read
900 37
0
Eskom a risk to South Africa as finances are getting worse: report
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Eskom is expected to deliver worse than expected financial results with the power utility a major risk to South Africa’s fiscal targets.

An article in the Rapport noted that Eskom expects to report a loss of R8.1 billion in the short term, which could swell to R26.5 billion in the medium term.

The National Treasury described Eskom’s financial problems as the single biggest risk to the South African economy and public finances.

This echoed the views of finance minister Malusi Gigaba, who warned in January that Eskom’s financial woes could collapse the economy.

“There would be no currency, and no economy for the country if Eskom went belly-up,” said Gigaba.

To address the mismanagement at Eskom, Gigaba said in his budget speech that the government has strengthened Eskom’s board and management with “highly-capable, ethical, and credible leadership”.

Ratings agency Fitch warned on Friday that Eskom Holdings’ “medium-term finances are under pressure from weak demand growth and the electricity regulator’s refusal to grant more substantial tariff increases”.

Measures including private-sector participation to improve the utility’s finances “will face significant political hurdles,” the company said as reported by Bloomberg.

Gigaba announced tax increases and spending cuts to narrow the fiscal deficit and curb debt in his budget on Feb. 21.

The government will look to sell some of its 195,000 properties as it seeks new funding and looks to reduce government guarantees handed to state-owned enterprises, he said. Eskom is the biggest recipient of guarantees at R220.8 billion, the Treasury said.

Eskom, meanwhile continues to battle allegations of corruption and mismanagement. The Sunday Times reported that former Eskom executive Matshela Koko’s wife has received millions of rand from the power utility.

“Documents in the possession of state capture investigators suggest the money flowed to companies where Koko’s wife, Mosima, is a director,” said the Sunday Times.

The report stated that the money was “channelled through Eskom service provider Impulse International, where Mosima’s 27-year-old daughter, Koketso Choma, was a non-executive director”.

In March last year, the Sunday Times reported that Koko’s stepdaughter received contracts for her company worth R1 billion from Eskom.

Source: BusinessTech

Related

Tags: corruptionEskomEskom HoldingsFeaturefinancial problemsFitchMalusi GigabaMatshela Kokomismanagementpower utilitySouth AfricaSouth Africa finance minister南アフリカ南非
ScanSendShare375Tweet234Share66Pin84Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Energy

Angola’s Sonangol and Chinese company sign MoU for Lobito refinery

by FurtherAfrica
June 9, 2023
Trade

China-Africa trade expo to be held in China’s Changsha

by 360 Mozambique
June 9, 2023
Nigeria needs currency reform for US$1.5B World Bank loan, country director says
Economy

World Bank sees Kenya economy up 5% this year

by FurtherAfrica
June 8, 2023
Economy

IMF concludes 2023 article IV consultation with South Africa

by Rafael Carvalho
June 8, 2023
Energy

Savannah energy’s Nigeria arm inks gas supply deal for local market

by Energy Capital & Power
June 8, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

Energy

Angola’s Sonangol and Chinese company sign MoU for Lobito refinery

by FurtherAfrica
June 9, 2023
0

Angola’s Oil Firm Sonangol and China National Chemical Engineering (CNCEC) last week in Beijing, China, signed a memorandum of understanding...

Read more

China-Africa trade expo to be held in China’s Changsha

June 9, 2023
Nigeria needs currency reform for US$1.5B World Bank loan, country director says

World Bank sees Kenya economy up 5% this year

June 8, 2023

IMF concludes 2023 article IV consultation with South Africa

June 8, 2023

Savannah energy’s Nigeria arm inks gas supply deal for local market

June 8, 2023

FurtherAfrica Partners Network

The Exchange Farmers Review Africa 360 Mozambique
TechGist Africa Energy Capital & Power Club of Mozambique
Taarifa Rwanda Web3Africa See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa  

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 107,193 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?