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Godongwana Outlines Terms and Conditions of Eskom Deal

SOUTH AFRICA
  • Speaking to the Chamber of Commerce & Industry yesterday, finance minister Godongwana was cited as saying the government’s attempts to solve the issues surrounding Eskom are being derailed by environmental activists, and stated that the country needs new coal-fired power stations as well as gas facilities.
  • Godongwana also supposedly went into more detail on the terms and conditions surrounding the Treasury’s assumption of Eskom’s debt, with the utility being obliged to invest in gas and nuclear projects as part of the deal.
  • Reflecting a stabilisation in the outlook for its debt, Moody’s have boosted the outlook for Eskom to positive while affirming their rating at Caa1.
  • Reports that fuel prices are set to rise in November are all but confirmed, with ENCA detailing a likely R1.43/litre price hike from Wednesday onwards to put Gauteng diesel at a record high of R25.49.
  • Focus will be paid to a lecture due to be given by SARB governor Kganyago, who is set to address monetary policy, at 10am local time (0800GMT). ABSA Manufacturing PMI and October vehicle sales data are also due.

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