Eskom and Transnet failures threaten to put South Africa in a debt crisis
17 October 2023
The implications of the National Treasury’s discussions with the World Bank to access a $1 billion loan (R19 billion) for Eskom’s unbundling and to upgrade Transnet’s locomotives are a matter of considerable concern.
Among these are:
A deeply constrained national fiscus
South Africa’s budget deficit is expected to grow to 6.5% of GDP, and our national debt is expected to grow to R6 trillion in 2025 – a staggering increase from 2011 levels, coupled by questions of the ability to service the burgeoning debt.