Tag ArchivesEskom

IMF, Treasury, economy, GDP, unemployment, International Monetary Fund

More political shocks

By Dave Mohr (Chief Investment Strategist) & Izak Odendaal (Investment Strategist), Old Mutual Multi-Managers. Some 50 years ago, British Prime Minister Harold Wilson coined the expression ‘a week is a long time in politics’. Faced with chaotic Brexit negotiations, backstabbing Tories and two Cabinet ministers resigning amid this scandal, current British Prime Minister Theresa May […]

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Nazmeera Moola, co-Head of Fixed Income, Investec Asset Management

MTBPS paints bleak picture

The Medium Term Budget Policy Statement (MTBPS), presented in Parliament by Finance Minister Malusi Gigaba, paints a bleak picture: the expenditure ceiling has been breached, there is no primary surplus and debt and guarantees combined are above 60% of GDP.  Not only is the market likely to hate it, but Standard & Poor’s may well downgrade […]

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Public-sector wage bill crowds out other areas of spending

According to the Medium Term Budget Policy Statement (MTBPS), public finances are facing growing strains and risks. “Several years of fiscal restraint have left funding gaps in a number of programmes, reflected in the build-up of unpaid accounts and financial imbalances. Without resolute action and planning to cut wasteful and inefficient spending areas, there is a […]

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Gigaba: More needs to be done for higher education

The student movement has correctly put the issue of higher education at the centre of the country’s transformation agenda, Minister of Finance, Malusi Gigaba said today as he delivered his Medium Term Budget Policy Statement (MTBPS) speech to parliament. “We cannot hope to grow and develop without the skills and intellectual capabilities that our universities […]

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Gigaba: Eskom’s governance issues of major concern

The failures of governance, leadership and financial management at Eskom are of grave concern. This is according to the Minister of Finance, Malusi Gigaba, who delivered his Medium Term Budget Policy Statement (MTBPS)speech to parliament today. “As government is guarantor over a significant portion of Eskom’s debt, it has become a significant risk to the […]

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Gigaba: Strategic equity partner to be brought into SAA

After the Treasury meets the new board of SAA, it will pronounce on its plans to consolidate aviation assets and bring in a strategic equity partner, Minister of Finance, Malusi Gigaba said today, as he delivered the country’s Medium Term Budget Policy Statement. “We believe a strategic equity partner can play an important role in […]

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State-owned companies developing a poor reputation: Gigaba

Recent years have seen several worrying developments with regard to state-owned companies (SOCs), with worrying trends of governance failures, corruption, operational inefficiency and the need for government bailouts. This is according to the Minister of Finance, Malusi Gigaba, who made his maiden budget speech to parliament today. “In this way, SOCs are developing a poor […]

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MTBPS: Treasury identifies risk to the fiscus

Government remains committed to operating within the expenditure ceiling over the medium term, the MTBPS said. In the current year, however, the recapitalisation of SAA and the South African Post Office put the ceiling at risk of a R3.9 billion breach. In addition, there are several risks to the fiscus over the period ahead: The […]

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