PODCAST | SOEs haemorrhage state funds and impact investor confidence
The discussion considers the continued struggles facing the nation’s state-owned enterprises
In this edition of Business Day Spotlight, we continue our focus on the political economy.
Our host Mudiwa Gavaza is joined on the line by Daniel Silke, an independent political economy analyst, author and speaker specialising in SA and international politics. Silke is also director of the Political Future Consultancy.
The discussion considers the continued struggles facing the nation’s state-owned enterprises (SOEs). In focus is the funding plan given by finance minister Tito Moboweni for Eskom, SAA and the SABC.
Government bonds and the rand fell last week Tuesday after Mboweni said the state might have to increase borrowing to fund an extra R59bn in aid for Eskom over the next two years.
Financial support for struggling SOEs such as the SABC, Denel and SAA will be released in chunks as certain conditions are met, Mboweni said in the National Assembly last week.
Silke gives his outlook for the rest of the year, together with comments on the rand and possible economic drivers to look out for. These and other questions are all on the table, together with the economic and political consequences of keeping SOEs operating as they are now.
Listen in to hear thoughts around these and other questions: