MNI INTERVIEW: Fed QT Likely To Linger After Rate Cuts Start

MNI BRIEF: BOE Markets Head Sees Wider Collateral, More Repos

MNI PBOC WATCH: PBOC Cuts 7-Day Rate As Reconfigures Framework

MNI China Daily Summary: Monday, July 22

MNI BRIEF: PBOC Lowers Ceiling of Its Interest Corridor

MNI: PBOC Sets Yuan Parity Higher At 7.1335 Mon; -1.18% Y/Y

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CBRT Data Watch

NBH Data Watch

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Godongwana Unveils Eskom Debt-Relief Plan, De Ruyter Steps Down Early

SOUTH AFRICA
  • South Africa's Finance Minister Enoch Godongwana delivered his budget speech yesterday, offering Eskom debt relief worth ZAR254bn (3.5% of GDP) over the next three years, even as the government will seek faster than expected fiscal consolidation. The plan to take on more than half of the beleaguered utility's debt came with a slew of strict conditions to protect public funds, which included making sure that Eskom focuses on the maintenance of its existing generation fleet. In addition, Godongwana announced new tax incentives for individuals and businesses to invest in renewable energy to boost overall generation capacity.
  • Meanwhile, Eskom CEO Andre de Ruyter left the company with immediate effect, a month earlier than planned, after giving a television interview in which he highlighted "entrenched" corruption within the government and Eskom management. De Ruyter said that graft and theft committed by people related to the ruling ANC party cost the company around ZAR1bn/month, adding that a senior minister brushed away his concerns about the involvement of a "particular high-level politician." He warned that the rolling blackouts may worsen in the coming months. Earlier this week, Eskom escalated load-shedding to new record highs.
  • Looking at the data calendar, South Africa's PPI readings for January will cross the wires at 09:30GMT/11:30SAST. Factory-gate inflation is expected to have eased to +12.8% Y/Y from +13.5% previously.
Political Risk BulletEM BulletHomepageBulletPolitical RiskEmerging Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.