Rand sinks as South Africa plans record bailout for Eskom

Bradley Prior

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Rand sinks as South Africa plans record bailout for Eskom

The rand declined the most among the world’s major currencies and bonds fell after the South African government unveiled a bailout plan that may strain the nation’s finances.

It sank as much as 2.3 percent, wiping out this year’s gains, to 14.3727 per dollar. The yield on the nation’s debt due 2026 jumped 24 basis points to 9.1 percent. [Bloomberg]
 

Dups!

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I am just wondering what the best option was for the government other than privatizing Eskom.

I am really pissed at the fuel levy hike considering the wastage by the Road Accident Fund.
 

krycor

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I am just wondering what the best option was for the government other than privatizing Eskom.

I am really pissed at the fuel levy hike considering the wastage by the Road Accident Fund.
we got off cheaply as it should have been about 50c.. think there was mention that they need to find a resolution for RAF so might be why.. that and inflation impact.

The way I see it, issues that need to be addressed are corruption, government policy (overreaching, uncertainty, stupidity of ministers vs policy, government bloat.. retirement only helps so much), SoE bleed, crime & theft, labour (efficiency, ethic, skilled/educated ratio), inflation vs growth..

The only thing addressed was Eskom splitting as a prerequisite for intervention(good luck with unions), margin plans on curtailing SoEs bleed & bailout and an update on focus on corruption crack down.. the later being weak as we yet to see ANY gov official being slapped with judicial process.

So yah.. brace yourself as come end next month prior to which unions have made clear Eskom is not reducing staff, Moody’s will have to downgrade us.
 

furpile

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I am just wondering what the best option was for the government other than privatizing Eskom.

I am really pissed at the fuel levy hike considering the wastage by the Road Accident Fund.
Lets see... We know Eskom is horribly overstaffed and overpaid. Their current wage bill is something like R30bn a month. So fire 30% of the workforce (even more should be let go) and you instantly have R10bn a month available. That is R120bn a year difference. They may even be able to pay their debts now.
 

Dups!

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Lets see... We know Eskom is horribly overstaffed and overpaid. Their current wage bill is something like R30bn a month. So fire 30% of the workforce (even more should be let go) and you instantly have R10bn a month available. That is R120bn a year difference. They may even be able to pay their debts now.
Any concrete info on Eskom being overstaffed?
 

Ockie

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Any concrete info on Eskom being overstaffed?
A 2016 World Bank Study of Utilities in Africa, which considered the staffing data for 36 countries, said that Eskom was overstaffed by 27500. Eskom’s headcount was 47658 in March last year compared to 47978 during the corresponding period in 2016. The figures included permanent staff and fixed-term contractors.

https://www.iol.co.za/business-report/energy/eskom-is-overstaffed-by-almost-15000-heads-says-outas-duvenage-14231604
 
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