SOUTH AFRICA: Eskom – the high price of inaction
Power utility Eskom’s “level 4” load-shedding on 2-3 September confirms pervious warnings about the record level of load-shedding that is threatening South Africa’s post-Covid-19 recovery. At the same time, ballooning debt problems will intensify pressure on the government to fi… Become a member to read the rest of this article Username or E-mail Password […]
ZAMBIA: Restructure or else…?
● Zambia’s payment position has steadily deteriorated, but the pandemic-related shock may well prove to be the tipping point, as suggested by recent news that the government will seek to restructure USD 11.2bn worth of external debt. ● The next Eurobond coupon payment worth U… Become a member to read the rest of this […]
SOUTH AFRICA: Double trouble
● South Africa’s currency and fiscal woes have taken another hit from Fitch’s 3 April downgrade of the sovereign’s long-term foreign and local currency credit ratings from BB+ to BB, with a negative outlook. ● Although President Cyril Ramaphosa’s decisive handling of the pande… Become a member to read the rest of this article
SOUTH AFRICA: COVID-19 could not hit at a worse time
● The fallout from the COVID-19 pandemic will only sharpen the National Treasury’s fiscal dilemmas and weaken South Africa’s odds of holding on to its final investment-grade credit rating. ● Within South Africa’s borders, the number of COVID-19 cases is ticking up, but draconi… Become a member to read the rest of this article
SOUTH AFRICA: Mboweni promises wage bill cuts, but can he deliver?
● The key concession to credit ratings agencies in Finance Minister Tito Mboweni’s 26 February budget presentation was his promise to reduce South Africa’s wage bill by ZAR 160.2bn over three years. ● However, it is not clear if the government can deliver and if the plan can b… Become a member to read […]
SOUTH AFRICA: Mboweni’s do-or-die budget
● Expectations ahead of the budget presentation on 26 February are largely pessimistic in the context of deteriorating economic growth and skyrocketing public debt. ● Finance Minister Tito Mboweni will try – against all odds – to avert the loss of South Africa’s final investme… Become a member to read the rest of this […]
SOUTH AFRICA: Troubled state of the nation
● President Cyril Ramaphosa’s State of the Nation Address (SONA) today, 13 February, scores points mainly for being realistic about the dire state of the economy. ● It is probably wise that, despite prior media speculation, he eschewed making grand announcements about Eskom re… Become a member to read the rest of this article
SOUTH AFRICA: Pensions to Eskom’s rescue?
● Plans to tap into public pension funds to take on ZAR 254bn of Eskom debt have gained significant momentum and may feature prominently in this week’s State of the Nation Address (SONA). ● From an operational perspective, Eskom’s constraints will be worse than last year, and … Become a member to read the […]
SOUTH AFRICA: Davos talk vs ANC politics
Finance Minister Tito Mboweni will fly South Africa’s reform flag at the World Economic Forum (WEF) next week, though his refreshing policy views will rightfully be seen as those of a lone voice within a divided ruling party. Indeed, while the minister will pledge at Davos that t… Become a member to read the […]
SOUTH AFRICA: Eskom – the millstone around everyone’s neck
● Not only does Eskom pose a growing threat to the country’s struggling economy, but also to Public Enterprises Minister Pravin Gordhan’s tenure and President Cyril Ramaphosa’s strength. ● Once-divided interest groups are beginning to converge around Eskom issues, which could … Become a member to read the rest of this article