“Houston, we have a problem”. It’s called Eskom, and plans for its rescue were a main focus of Finance Minister Tito Mboweni’s Budget 2019 Speech.
Although we’ve seen the Eskom crisis coming for a long time, it could now be entering a critical phase. It’s important for us all to understand the consequences if Moody’s, the last ratings agency not to have rated us as junk, does decide to downgrade us.
To that end, after discussing the financial risks we face generally, we consider the details of the Eskom crisis and of government’s response to it - will it succeed and has credibility been restored?
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