South Africa: Reforms on SOEs bearing fruit - Expert

South Africa: Reforms on SOEs bearing fruit - Expert

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23.01.2018-Pretoria/ National Treasury says it will support Eskom's bid to persuade banks to lend it R20 billion.

 Investment Analyst Nadir Thokan says Deputy President Cyril Ramaphosa’s delegation to the World Economic Forum (WEF) is taking a very positive message in terms of government’s reforms at state owned entities.

 Thokan’s statement comes after Eskom said it would ask local banks to reopen lending facilities that were suspended last year.

 National Treasury says it will support Eskom’s bid to persuade banks to lend it R20 billion.

 This as Eskom’s suspended Chief Financial Officer Anoj Singh resigns.

 "The state-owned entities, particularly Eskom, are in a lot of financial trouble. You know it’s going to take a lot of hard work to turn them around. We know that there’s around R280 billion of debt on the balance sheet and about R270 billion of contingent liabilities,” adds Thokan.

 Meanwhile, Ramaphosa and Finance Minister Malusi Gigaba will meet with Eskom’s board and staff next month.

 Speaking on the side lines of the World Economic Forum in Davos Switzerland, Gigaba said the decision follows concerns raised by staff about governance at the power utility.

 Gigaba has also expressed full confidence in the new chairperson of the Eskom board Jabu Mabuza.


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