Strap yourself in for a reconstruction bond or a reconstruction tax levy, because the money is simply not there.— Dr Adrian Saville, CEO - Cannon Asset Managers
Eskom implemented load shedding on Thursday for the fifth day in a row as the state-owned utility struggled to keep its generators going.
It may not feel like it, but load shedding is the least of our worries.
Even if Eskom manages to keep the lights on; the mountain of debt it accumulated in the past decade threatens to destroy the South African economy.
In 2008 Eskom had R40 billion in debt and sold more electricity than it does today, despite having far fewer employees and expenses.
Today, Eskom owes R419 billion and earns an income that doesn’t even cover the interest on its debt.
Eskom borrowed R300 billion (and counting) to build Kusile and Medupi, two enormous and deeply flawed coal-fired power stations.
Do President Cyril Ramaphosa’s plans have any hope of saving Eskom and the country?
Listen to the interview in the audio below (and scroll down for more quotes from it).
This is about stitching and patching what for all intents and purposes is a very grand risk to the country.— Dr Adrian Saville, CEO - Cannon Asset Managers
Eskom is troubled… operationally… financially… it is also technologically out of pace… Almost all of our energy is coal-based… We are a decade off technologically...— Dr Adrian Saville, CEO - Cannon Asset Managers
…Invariably two things happen with grand-scale infrastructure spend. The first is the number goes up and the second is the date goes out…— Dr Adrian Saville, CEO - Cannon Asset Managers
Both of these very, very big projects spends – which was supposed to deal with the next decade of energy certainty – both of them are delivering at 50% of their designs.— Dr Adrian Saville, CEO - Cannon Asset Managers
To cut spending in an election year is almost unthinkable. I’m intrigued as to where they’re going to find the funding… it’s not important; it’s absolutely critical!— Dr Adrian Saville, CEO - Cannon Asset Managers
If something is going to galvanise a nation… The last time we had something like this was the World Cup…— Dr Adrian Saville, CEO - Cannon Asset Managers
South Africa has been given the benefit of doubt [by rating agency Moody’s] for an extremely long time… A downgrade is going to make Eskom’s problem even bigger… Eskom would be looking for funding at higher rates… It really is worrying.— Dr Adrian Saville, CEO - Cannon Asset Managers
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
Litigation will follow, says Minister Gordhan. Business Day’s Carol Paton on his inquiry into the failing Medupi and Kusile.
Psychiatrist Renata Schoeman has tips and tricks to help you cope without blowing a fuse.
It’s now the most downloaded IOS app and 2nd most downloaded Android app in SA. Bruce Whitfield interviews co-founder Dan Wells.
Nicol Jansen from Agri SA warns of rising food price inflation if the crisis continues for much longer.
Bruce Whitfield speaks to Tanya Cohen (Busa), Philippa Rodseth (Manufacturing Circle) and Henk Langenhoven (Minerals Council SA).
Privatisation can unlock Eskom’s potential to operate like highly successful utilities globally, according to Neeraj Sanjay Mense.
Spoor & Fisher consultant professor Owen Dean explains the outcome of the copyright infringement case against Disney.
Choir director Ralf Schmitt says the ensemble is honoured to represent South Africa and going to next round of the competition.
Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.
South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.
[From the archives] Jesse Clegg talks about his famous father and attitude to money (hopes and fears, successes and failures...).
A probe found "suspicious transactions" worth R1.2bn, bribery and theft. Bruce Whitfield interviews EOH CEO Stephen Van Coller.
Investigative journalist Jacques Pauw says he's sorry for any harm caused in his article on Mkhwebane and her principal witness.
After South African star Mbuzeni Mkhize performed a remix of Rihanna's track 'Diamonds' she contacted him to collaborate with her.