Mboweni: Treasury not 'actively' considering prescribed assets

[JayM]

The rest is in fixed deposits/cash.

So ~8% -tax at your marginal rate, when the ZAR is depreciating at this rate or more, and could suddenly depreciate even further. At least many shares on the JSE have a currency hedge built in (due to offshore earnings).

 

[SaiyanZ]

So ~8% -tax at your marginal rate, when the ZAR is depreciating at this rate or more, and could suddenly depreciate even further. At least many shares on the JSE have a currency hedge built in (due to offshore earnings).

It's better than nothing or negative returns. Also not sure what I want to to do long term and putting money into shares short term is just speculation and not a good idea.

 

[R13...]

Yeah, my point of issue with his post was that Electricity prices would have to go up, when its evident that they wouldn't (making assumptions about payment cultures and all that of course)

And the reason no investors were interested in Eskom back in the day were the low prices, and probably the already evident lack of maintenance of the fleet.

Back then it was an attempt to get IPPs to add additional capacity instead of Eskom building. And you're right the lack of takers was because prices were too low to make it a worthwhile investment. Breaking up Eskom might actually make it work a bit, in that people can feed into the grid but even better is when they are allowed direct. The probably with direct of course is that there'll be cherry picking where they only sell to people who are unlikely to default or riot when you cut them off for not paying their dues.

 

[C4Cat]

Yeah, my point of issue with his post was that Electricity prices would have to go up, when its evident that they wouldn't (making assumptions about payment cultures and all that of course)

And the reason no investors were interested in Eskom back in the day were the low prices, and probably the already evident lack of maintenance of the fleet.

Given that new power stations need to be built and new distribution networks and private companies will want to maximise profits, I still maintain prices would go up