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<p>The minister of finance Tito Mboweni introduced the new interim PIC board .A key priority for the board will be to finalise its audit committee. CNBC Africa’s Kopano Gumbi shares more details.</p>


New PIC board breaks with tradition

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<p>Rating agency Moody’s has warned that the tabling of an appropriation bill in parliament to give Eskom an extra R59 billion of government support by Finance Minister Tito Mboweni is “credit negative” for the sovereign as it is a further drain on fiscal resources. Moody’s is the last of the three big international ratings agencies to have South African debt at investment grade. Cobus Potgieter, Director at AIP Capital Management joins CNBC Africa to give analysis.</p>


Moody’s warns SA over Eskom funding

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<p>South Africa&#8217;s government has allocated an extra R59 billion to struggling state-owned power utility Eskom over the next two years so it can service its debt. A special appropriation bill that was tabled in Parliament today. Joining CNBC Africa to unpack the practicality and implementation of the appropriation is Bianca Botes, Treasury Partner at Peregrine Treasury Solutions.</p>


Unpacking FinMin Mboweni’s plan to save Eskom


<p>CAPE TOWN (Reuters) &#8211; South African Finance Minister Tito Mboweni aims to table a bill in parliament on July 23 to give struggling state power firm Eskom more money for the current financial year and next, to alleviate its acute liquidity problems.</p>



<p>Mboweni told parliament on Thursday that Eskom presented the biggest risk to the country’s fiscal framework and stressed that there were serious risks to the economy if it collapsed.</p>



<p>Eskom, which supplies more than 90 percent of the country’s electricity but has implemented severe power cuts this year, fails to generate sufficient profit to meet its debt-service costs and has required state cash injections to stay afloat.</p>



<p>Mboweni, a key ally of President Cyril Ramaphosa, added that the government would also provide financial support from its contingency reserve to ailing South African Airways, weapons manufacturer Denel and broadcaster SABC.</p>



<p>“This additional financial support cannot be a blank cheque to these state-owned enterprises,” Mboweni said. “We really and truly cannot go on like this.”</p>



<p>The minister said South Africa’s tax collection was underperforming due to a weak economic environment and the government would focus its short-term efforts on addressing rising debt and on stricter controls on expenditure.</p>



<p>Reporting by Wendell Roelf; Writing by Alexander Winning; Editing by Olivia Kumwenda-Mtambo and Elaine Hardcastle </p>


South Africa’s Eskom new funding bill expected July 23, what you need to know

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<p>The rand has been recovering since the news that the ruling ANC would consider expanding the mandate of the reserve bank. The Minister of Finance, Tito Mboweni and the Governor of the Reserve Bank, Lesetja Kganyago responded. CNBC Africa reporter Kopano Gumbi filed this report.</p>


Mboweni slams Magashule over ‘reckless statements’ on Reserve Bank

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<p>Moody’s is the only ratings agency to still have South Africa above junk status. Will it change its mind after Wednesday’s Budget? CNBC Africa spoke to Lucie Villa, Moody’s Lead Sovereign Analyst for South Africa to find out.</p>


Exclusive: Moody’s reacts to SA’s #Budget2019

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<p>Top rated economist Gina Schoeman from Citi Global Markets rates the Budget 2019 speech that happened yesterday.</p>


Top rated economist Gina Schoeman rates fimin Mboweni’s #2019budgetspeech

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<p>Eskom maybe getting a bailout but the risk of load shedding remains. An alternative in renewable energy could be available; CNBC Africa’s Kopano Gumbi is out in Johannesburg with Tim Frankish of SolarSaver, a solar energy company hoping to offer solutions.</p>


This solar energy company is cashing in on Eskom’s woes

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<p>Struggling power utility Eskom is set to receive a R69 billion bailout over three next years, Joining CNBC Africa for a discussion on this is Chris Yelland MD, EE Publishers and Marubini Raphulu CEO, Huisman.</p>


#Budget2019: Fimin Mboweni sets aside R69bn for Eskom over the next 3 years

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<p>Discussing the thought processes behind the 2019 Budget in the best interests of the economy, business and the ordinary South African, is Deputy Minister of Finance Mondli Gungubele, who spoke to CNBC Africa’ Fifi Peters from his office in Cape Town. Topics include the headline numbers, SOEs, unemployment, interest rates, and proposals as to what can sustain the country.</p>


Mondli Gungubele: How to look at fimin Mboweni’s #2019budgetspeech

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<p>With the Rand falling to R14.36 at the start of Minister Tito Mboweni’s Budget Speech and then moving back into positive territory, Rashaad Tayob, Fund Manager at Abax Investments, joined Godfrey Mutizwa to talk about the reaction of the bond and currency markets to the poor headline numbers of the Budget.</p>


Markets react to fimin Mboweni’s #2019budgetspeech

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<p>This year’s budget is less about “give me some more” and more about “let’s transform the business to be more accountable” SAA’s CEO Vuyani Jarana told CNBC Africa’s Fifi Peters outside parliament today. He added that although there was no express allocation for SAA, the Budget did provide a framework to address the challenge of transforming SOEs.</p>


SAA’s Vuyani Jarana on key takeaways from #Budget2019

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<p>Under the circumstances, Cas Coovadia, Managing Director of the Banking Association of South Africa, was happy with the Budget Speech today. He told CNBC Africa’s Fifi Peters it was important to put conditions for the utilisation of funds for SEOs, and to make public the details of the Presidential Task Team’s recommendations and how Eskom will be broken up into three, and how the funding will be linked to that. He also gave his opinion of the Budget as a whole and a potential ratings downgrade.</p>


Did fimin Mboweni do enough to avoid ratings downgrade?

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<p>With South Africa’s debt-to-GDP ratio increasing and breaching its fiscal deficit ceiling will Moody’s downgrade it to junk? Lesetja Kganyago, Governor of the South African Reserve Bank explained what a downgrade to junk would mean.</p>


#Budget2019: What a Moody’s downgrade will mean for SA

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<p>Deloitte Southern Africa CEO Lwazi Bam gives his views on the 2019 budget speech with a focus on State Owned Enterprises and rebuilding trust in the auditing profession.</p>


Deloitte’s Lwazi Bam on rebuilding trust in the auditing profession

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<p>Minister Mboweni’s state budget was reform-minded as to put the South African economy back on track after a difficult turbulent rule of his predecessor says Mike Brown, CEO of Nedbank.</p>


Nedbank CEO reacts to Mboweni’s budget


<p>South Africa’s Finance Minister Tito Mboweni, wearing a
fiery red tie and full of energy was at pains during a press conference with media
, ahead of his maiden Budget, to say that Treasury is not giving troubled-state
owned entity Eskom a bailout or taking on its debt but rather funding it to the
tune of R69bn over the next three years or R23bn a year. This is to financially
support it during its reconfiguration.</p>



<p>In the State of the Nation Address, President Cyril
Ramaphosa announced that Eskom will be reconfigured into three independent
components: generation, transmission and distribution. </p>



<p>Mboweni warned that the fiscal support to Eskom is
conditional. </p>



<p>In his Budget speech he states that “pouring money directly
into Eskom in its current form is like pouring water into a sieve.&nbsp; </p>



<p>“I want to make it clear: the national government is not
taking on Eskom’s debt. Eskom took on the debt. It must ultimately repay it. We
are setting aside R23 billion a year to financially support Eskom during its
reconfiguration.&nbsp; </p>



<p>“The fiscal support is conditional on an independent Chief
Reorganisation Officer (CRO) being jointly appointed by the Ministers of
Finance and Public Enterprises with the explicit mandate of delivering on the
recommendations of the Presidential Task Team. We will make announcements in this
regard in the coming weeks.”</p>



<p>The minister described this process as essentially placing,
what many see as the biggest risk to South Africa under curatorship.&nbsp; </p>



<p>“We are not just loaning Eskom money, we want to look after
every rand and cent we give them” he said. </p>



<p>Staunchly the minister warned other state owned enterprises
seeking funding from Treasury that the days of bailouts are over. If they want
funding we will appoint a CRO and essentially place them under curatorship.
This will make them reluctant to come to Treasury, he said. </p>



<p>Labouring the point in his speech he said “We must tighten
the guarantee rules. If a state-owned enterprise applies for a government
guarantee for operational purposes, it will be required to appoint a CRO in
concurrence with the National Treasury and its bondholders. The CRO will
undertake a full operational and financial review. When banks need state
support, we appoint a curator. When provincial and municipal finances are in
disarray, government can take over the running of the administration. These
rules should also apply to all SOEs.&nbsp; </p>



<p>“Cabinet is considering a proposal to end the issuing of
guarantees for operational purposes. Expiration dates on guarantees will also
be strictly enforced. As the President announced, strategic equity partners
will be found where possible. “</p>



<p>The minister in his speech also said the time has come for the
country to ask “do we still need these enterprises? If we do, can we manage
them better? If we don’t need them, what should we do?”</p>



<p>Asked why he posed this question and what his answer would
be, he said he wanted to agitate a conversation.</p>



<p>“We need to move with the times. We need to establish what
our priorities are. Should R10bn be put in a loss-making airline or the taxi
and railway industry?</p>



<p>“Who are we serving by the decisions we take?”</p>



<p>He added that we need a forum to discuss these questions, in
Eskom’s case with the trade unions, bondholders, management and the relevant
ministers.</p>



<p>“The status quo is not working, we have to cross the Rubicon
on the other side of Rome.”</p>


Tito Mboweni

New PIC board breaks with tradition

Moody’s warns SA over Eskom funding

Unpacking FinMin Mboweni’s plan to save Eskom

South Africa’s Eskom new funding bill expected July 23, what you need to know

Mboweni slams Magashule over ‘reckless statements’ on Reserve Bank

Exclusive: Moody’s reacts to SA’s #Budget2019

Top rated economist Gina Schoeman rates fimin Mboweni’s #2019budgetspeech

This solar energy company is cashing in on Eskom’s woes

#Budget2019: Fimin Mboweni sets aside R69bn for Eskom over the next 3 years

Mondli Gungubele: How to look at fimin Mboweni’s #2019budgetspeech

Markets react to fimin Mboweni’s #2019budgetspeech

SAA’s Vuyani Jarana on key takeaways from #Budget2019

Did fimin Mboweni do enough to avoid ratings downgrade?

#Budget2019: What a Moody’s downgrade will mean for SA

Deloitte’s Lwazi Bam on rebuilding trust in the auditing profession

Nedbank CEO reacts to Mboweni’s budget

#Budget2019: Government not taking on #Eskom’s debt but will provide funding, place it under curatorship

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Tito Mboweni

New PIC board breaks with tradition

Moody’s warns SA over Eskom funding

Unpacking FinMin Mboweni’s plan to save Eskom

South Africa’s Eskom new funding bill expected July 23, what you need to know

Mboweni slams Magashule over ‘reckless statements’ on Reserve Bank

Exclusive: Moody’s reacts to SA’s #Budget2019

Top rated economist Gina Schoeman rates fimin Mboweni’s #2019budgetspeech

This solar energy company is cashing in on Eskom’s woes

#Budget2019: Fimin Mboweni sets aside R69bn for Eskom over the next 3 years

Mondli Gungubele: How to look at fimin Mboweni’s #2019budgetspeech

Markets react to fimin Mboweni’s #2019budgetspeech

SAA’s Vuyani Jarana on key takeaways from #Budget2019

Did fimin Mboweni do enough to avoid ratings downgrade?

#Budget2019: What a Moody’s downgrade will mean for SA

Deloitte’s Lwazi Bam on rebuilding trust in the auditing profession

Nedbank CEO reacts to Mboweni’s budget

#Budget2019: Government not taking on #Eskom’s debt but will provide funding, place it under curatorship

News Tips

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