Tag ArchivesEskom

electricity

Early round IPP projects remain attractive funding opportunities 

By Corneleo Keevy, head of credit risk management at Ashburton Investments  The recent appointment by President Ramaphosa of Jeff Radebe as Energy Minister provided some promise that the uncertainty surrounding the Renewable Energy Independent Power Producers Programme (REIPPP) would be resolved. (more…)

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electricity

NERSA allowed R85bn a year in Eskom runaway costs – OUTA

Non-profit civil action organisation, OUTA, says that the conduct of the National Energy Regulator for South Africa (NERSA) over the past decade, more specifically its inability to hold Eskom to account over runaway costs on both capital projects and operational expenditure, has lumped South Africans with an unnecessary burden of R85bn per annum for the […]

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electricity

Fitch Downgrades Eskom to ‘BB-‘

THE FULL STATEMENT FROM FITCH RATINGS: Fitch Ratings has downgraded Eskom Holding SOC Ltd’s (Eskom) Long-Term Local Currency Issuer Default Rating (IDR) and unguaranteed local currency senior unsecured ratings to ‘BB-‘ from ‘BB+’ and maintained them on Rating Watch Negative (RWN). Fitch has also affirmed the government-guaranteed local currency senior unsecured debt ratings at ‘BB+’.  […]

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electricity

Eskom’s grueling turnaround possible, says OUTA

OUTA says Eskom’s Interim Financial Statements (IFS) to September 2017 raise both hope and concern, following years of mismanagement that has left Eskom with a massive debt and a compromised liquidity position. “However, the recent turn of events after the appointment of the new leadership has sparked new hope with the new board’s apparent determination […]

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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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