Finance minister Enoch Godongwana has announced that the future of state-owned companies in South Africa will be determined by the value they create and whether they can be run sustainably without bailouts from the fiscus.
“For this reason, SOCs need to develop and implement [their own] sustainable turnaround plans,” Godongwana said. “We acknowledge, however, that Eskom is faced with a large amount of debt that remains a challenge to service without assistance,” Godongwana stated. “Any solution will be contingent on continued progress to reform South Africa’s electricity sector and Eskom’s own progress on its turnaround plan and its restructuring,” Godongwana said.
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