SA’s fiscal challenges are likely to worsen as Eskom, the country’s ailing power utility, may need yet more funds in 2020 over and above what the government plans to allocate, a report by global economic forecast and analysis group FocusEconomics says.
The report released on Wednesday says SA will likely record growth of 1.4% in 2020, and 1.7% in 2021. The authors of the report highlighted that the country’s fiscal challenges continue to mount, with Fitch Ratings downgrading Eskom’s stand-alone credit rating further into junk territory on September 30. The cut affirmed the state power provider’s waning ability to ease its hefty debt load, intensifying the pressure on public finances, the report stated...
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