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Godongwana Could Disappoint on Eskom Details

  • Finance Minister Godongwana is to outline the budget at 2pm local time (1200GMT) today, with the fiscal tailwind present at last year’s MTBPS having faded. The Eskom debt pile and potential SRD grant remain outstanding issues for markets, but those looking for specifics on an Eskom plan could be left disappointed. Consensus looks for budget deficit to narrow to 4.5% this fiscal year, 4.4% in the next.
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  • The budget itself will be followed two hours later by an investor call (to continue across the following two weeks or so) to brief investors on any Eskom debt relief arrangements.
  • Local journalists report that yesterday evening saw Eskom load-shedding hit record levels, with total load-shedding amounting to 7,045MW – technically stage 7 – although this wasn’t formally announced by the utility. Eskom did not respond to media requests on the topic.
  • The government confirmed late yesterday that minimum hourly wages will rise by 9.6% to ZAR 25.42 in March, a rise that outstrips inflation forecasts for 2023 and will feed directly into estimates for public sector wage bills in Godongwana’s budget later today.
  • Markets also await a cabinet reshuffle in South Africa, with ANC SecGen Mbalula confirming yesterday that all cabinet reshuffle matters will be concluded by the end of the month, according to the Daily Maverick.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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