22 February 2019

South Africa: Mboweni Confirms Eskom's R150bn Bailout, Amortised Over a Decade

Photo: SABC/Youtube
Finance Minister Tito Mboweni.
analysis

Finance Minister Tito Mboweni on Thursday confirmed that R23-billion annually over the next 10 years had been pencilled in for Eskom - that's R150-billion amortised over the decade - as Public Enterprises Minister Pravin Gordhan echoed this number a couple of hours later during the parliamentary debate on Eskom. Officially, the Budget had announced support of R23-billion for each of the next three years, with conditions linked to the power utility's unbundling.

Daily Maverick had already confirmed on Wednesday with National Treasury that Eskom actually could expect the support of up to R150-billion, which is R23-billion a year amortised over the next decade. It had become clear in Annexure W3 of the Budget documentation that the R23-billion a year over each of the next three years was not the be-all and end-all of government support for Eskom.

In the run-up to Wednesday's Budget the power utility had pitched for a debt swap by which government would take on R100-billion off its R419-billion debt. That didn't happen as the government decided on a straight cash injection of R23-billion a year, definitely for three years -- and pencilled in for a decade - but depending on factors such as the soon-to-be-announced new...

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