#MTBPS2019: Mboweni Warns Bailout-Prone Eskom, All But ‘Grounds’ SAA

In Wednesday’s medium-term budget policy speech, Finance Minister Tito Mboweni outlined what he believes is South Africa’s biggest economic risk, second only to slow economic growth.

In a word, that risk is Eskom.

The country’s massive, flailing power utility is now burdened by a massive R450bn debt, has recently re-introduced rolling blackouts to save the grid from total shutdown, and is still without a permanent chief executive. 

Although some analysts argue that “saving” Eskom is like putting a band-aid on a bullet wound, the medium term budget policy statement outlines some clear steps to be taken in order to turn it around.

As in budgets gone by, this starts with yet another government bailout. 

Against the backdrop of this year’s very financially constrained budget, the government has put aside an additional R26bn in financial support to Eskom.