ECONOMIC AND MARKET OVERVIEW
FEBRUARY IN REVIEW
South Africa’s Finance Minister Enoch Godongwana tabled the 2023/2024 National Budget on 22 February. As widely expected, the budget was dominated by the electricity crisis. Another revenue windfall (due to elevated commodity prices) and savings on expenditure in 2022/23 provided some room for maneuver to respond to this. The Minister of Public Enterprises, Pravin Gordhan welcomed Eskom’s debt relief of R 254 billion in the form of government servicing Eskom’s debt obligations for the next three financial years (both debt capital and interest). Furthermore, government will take up R 70 billion debt from Eskom’s balance sheet, thereby reducing the debt burden further to sustainable levels. Eskom’s total debt at the end of 2022 was R 422 billion.
In what was described as a market friendly budget, other highlights include households and firms will be provided with tax incentives and relief from fuel levy hikes to mitigate the impact of the electricity woes. Treasury also responded to recent widespread floods across the country by making available R 1.7 bn in the next two years to assist with flood disaster relief.
