Africa Economics

Africa Economics Update

31 January, 2019

S Africa: Eskom debt risks overstated, but tough choices ahead

Fears that troubles at South Africa’s public power firm will lead to another downgrade of the state’s credit rating seem overdone. Over the long term, however, the utility is not sustainable. Securing the power supply will require further investment, either via a new public subsidy or an inflation-spurring price hike.

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