Mboweni allocates R60-billion for SAA and Eskom

State-owned enterprises (SOEs) in need of financial assistance will be allocated R129 billion in bailouts over the next three years.

National carrier South African Airways (SAA) has been allocated R16.4 billion to settle guaranteed debt and interest.

While Eskom has been allocated a big chunk of the budget as well.

Finance Minister Tito Mboweni made the announcement during the 2020 budget speech in Parliament on Wednesday.

Joanne Joseph speaks to economist Dr Sean Miller.

What concerns me is that that in the budget the minister an extra R60 billion for Eskom and SAA, most of which will go to Eskom but there is no clear plan why this will be sufficient.

Dr Sean Miller, Economist

I have argued elsewhere that Eskom is a national problem and there is no way we can make it someone's problem. It is going to need to be bailed out one way or the other.

Dr Sean Miller, Economist

Listen to the full interview below...


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