Tag: Eskom

The National Budget delivered by South Africa’s Minister of Finance, Enoch Godongwana, showed that government is making some significant financial commitments to restore Eskom to viability and maintain social grants. But with GDP growth projected at 1.4% on average from 2023 to 2025, and a potential tapering-off of the commodities boom over the medium term, how will government fund these commitments?

The 2023 Budget was tabled to Parliament on 22 February 2023 by South African Finance Minister Enoch Godongwana.

Standard Bank CEO Sim Tshabalala recently suggested that Eskom should consider hiring an international candidate to succeed its outgoing CEO, André de Ruyter. Although Mr. Tshabalala is trying to be helpful, his suggestion misses the mark. A foreign appointee – no matter how capable or qualified – will not be able to fix the mess at Eskom. Another South African in the post won’t succeed either.

There are many problems with South Africa, but Eskom and its continuing descent into darkness and chaos seems to be a symbol for all of it. Corruption, mismanagement, theft, incompetence, ideological stupidity, and now, attempted murder.

Eskom, as a state-owned monopoly, with centrally controlled oversight and direction, is not the best structure for the supply of electricity in South Africa, a critical energy source without which no nation can grow and prosper. Better structures are those that have evolved under competitive circumstances in the European Union, United States, and small, forward-looking countries such as New Zealand.

This year has been nothing, if not eventful. We started 2022 with Russian President, Vladimir Putin, declaring war on Ukraine. This event then triggered an energy crisis and has driven inflation, in major economies, to unprecedented levels, along with interest rates. And now, as the year draws to a close, COVID-19 has snuck in again to dominate headlines.

Sustainable societies assume natural resources are finite and aim to practice environmental protection that promotes balance between humans and nature. Adapting sustainability measures can save money in addition to environmental impacts.

The good news stemming from the Medium Term Budget Policy statement (MTBPS) is that in 2023/24, South Africa is expected to achieve its first primary budget surplus in 15 years and this will be achieved with no new revenue enhancing measures from 2023/24 onwards. 

The 2022 Medium Term Budget Policy Statement (MTBPS) was tabled to Parliament on 26 October 2022 by South African Finance Minister Enoch Godongwana.

The conversation started poorly and deteriorate from there. “Triple or single phase?” was his opening gambit. And already I was stumped. “How do I tell?” was my weak retort … and already I could feel his eyes rolling on the other side of the phone.