Earlier today, South Africa’s Finance Minister Enoch Godongwana tabled his Budget Speech for 2023 in Parliament.
One of the major themes of his budget was the government assisting the ailing power utility, Eskom with its massive debt.
The minister announced that the state will shoulder at least two-thirds of the state-owned entity’s debt burden.
The finance boss announced that the government will be taking over R254 billion of Eskom’s colossal R423bn debt in a bid to address the utility’s persistently weak financial position and enable it to conduct the necessary investment and maintenance.
Godongwana said the debt relief the government was proposing had very strict conditions and would be about R168bn in capital, and R86bn in interest over the next three years.
The government is also proposing an increase in excise duties on alcohol and tobacco of 4.9%, in line with expected inflation.
This means that the duty on:
- A 340ml can of beer increases by 10c.
- A 750ml bottle of wine goes up by 18c.
- A 750ml bottle of spirits is to increase by R3.90.
- A 23g cigar is going up by R5.47.
Momentum Investments economist Sanisha Packirisamy shared her thoughts on Godongwana’s budget with Business Report.
Listen to what she had to say about the minister’s budget below:
BUSINESS REPORT