South Africa’s Treasury To Speed Up Eskom’s Revival

Eskom results held at Megawatt Park in Johannesburg on Tuesday, July 30 2019. Pic: Waldo Swiegers / Bloomberg

South Africa’s National Treasury has announced plans to accelerate the restructuring of ailing power utility Eskom. This decision comes after ratings agency, Fitch, opted to keep the sovereign credit rating on hold but still with a negative outlook.

Responding to Fitch’s decision, the Treasury says it is in partnership with the Department of Public Enterprises to institute a series of measures which will bring discipline to the utility’s finances, and to step up the timeline for restructuring,”.

Fitch warned on Wednesday, that failure to form a credible plan to stabilize government debt worsened by bailouts for troubled state-run firms like Eskom, could prompt a downgrade. This is regularly cited as one of the key risks to South Africa’s economy.

Your Friends Also Read:  South Africa's main opposition Democratic Alliance names interim leader

State-run enterprises in South Africa have had a record of mismanagement and political interference. Most have been operating on government bailouts without plans to be self-sufficient or profitable

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.



Leave a Reply

Previous Article

Zimbabwe to spend $133 million on maize subsidies after drought

Next Article

Sudan’s military leader reverses self on handing al-Bashir to ICC for trial

Related Posts