Whereas the State of the Nation is the president’s shopping list, the budget tells you what you eventually get to buy. And South Africa’s shopping basket is at barebones levels. Under the circumstances, Minister Tito Mboweni has done well to present a transparent if sober look at the state of South Africa’s finances. But the circumstances matter. Eskom is in crisis – and needs significant support. The R23 billion that Mboweni promised for the next three years would not even be enough to cover its debt payments. Eskom needs a major overhaul. Let’s hope that the new Chief Reorganisation Officer tasked to oversee the change will have enough political capital to cut the wage bill and split the entity into three separate parts, privatising those components which are still solvent.
Budget exposes depth of South Africa’s woes
Budget exposes depth of South Africa’s woes
Budget exposes depth of South Africa’s woes
Whereas the State of the Nation is the president’s shopping list, the budget tells you what you eventually get to buy. And South Africa’s shopping basket is at barebones levels. Under the circumstances, Minister Tito Mboweni has done well to present a transparent if sober look at the state of South Africa’s finances. But the circumstances matter. Eskom is in crisis – and needs significant support. The R23 billion that Mboweni promised for the next three years would not even be enough to cover its debt payments. Eskom needs a major overhaul. Let’s hope that the new Chief Reorganisation Officer tasked to oversee the change will have enough political capital to cut the wage bill and split the entity into three separate parts, privatising those components which are still solvent.