The mini-budget and Eskom's debt

Loadshedding is the single biggest challenge facing our economy and many commentators were disappointed that the mini-budget said so little about plans to solve the crisis. The Minister of Finance broadly explained that a third to two-thirds of Eskom's debt will be taken over by the government. This is necessary for the unbundling, so none of the three new entities has too big a debt burden. This will allow them to borrow anew to finance important investments in renewable generation and the grid. However, there are some important questions that need to be answered. * The Economics Minute is supported by the NWU Business School.