ECONOMIC WEEK AHEAD: Tito Mboweni’s first budget will shed light on Eskom
The Treasury has to tackle an electricity crisis on top of high unemployment and a global downturn
When finance minister Tito Mboweni takes the podium on Wednesday South Africans will wait with bated breath to hear about the state of the country’s finances, paying close attention to Eskom as the power utility struggles to keep on the lights. This comes ahead of what economists warn is the most important national elections since 1994, with the ANC fighting to hold on to its position. Novare economic strategist Tumisho Grater says the electricity crisis added to the mix of high unemployment and a global backdrop that is less supportive of growth is likely to see the Treasury revise downward the country’s growth forecasts, which will have an impact on the amount of revenue the government is able to collect. “While there are expectations that there will have to be some tough decisions, in terms of cutting expenditure in the right places, the question remains where the revenue is going to come from to fund activities and projects that will support economic growth,” she said. Capital E...
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