“South Africa, like all other countries, is confronted with challenges ranging from constraints, electricity being one of those as well as building infrastructure,” said South African finance minister, Nhlanhla Nene.
Nene stated that these challenges should however provide the country with an opportunity to step up its focus on infrastructure.
(READ MORE: South Africa utility Eskom says reserves exhausted, power outages inevitable)
“As government, we have put together a comprehensive plan to address Eskom’s challenges and we are working with Eskom in order to address this. It’s not only the financial sustainability but it is also governance, it is also operational issues at Eskom,” he said.
Nene added the country’s medium-term budget policy statement includes a particular package that seeks to address the immediate Eskom financial situation. The idea is to place the power utility in a position where it is able to go out and borrow on its balance sheet.
(READ MORE: Innovative energy storage devices to solve Africa’s power problem)
“What we are trying to do is make sure that that energy challenges are challenged in its totality and it’s for that reason that the deputy president leads the inter-ministerial task team that is looking into energy, because energy is a major constraint in the economic agenda,” he said.