Godogwana concerned over Transnet, Eskom financial troubles
Finance Minister Enoch Godogwana has expressed concern about the worsening financial challenges faced by Transnet and Eskom.
He told Parliament on Wednesday National Treasury has teamed up with Transnet to ensure the entity is able to meet its debt obligations.
He said their strategy is to transform the country's logistics sector.
"Rail underperformance is estimated to have cost up to 5 per cent of GDP in 2022, with losses in the region of R50 billion in the minerals sector alone.
"Given the scale of the challenges, the National Logistics Crisis Committee was instituted to broaden reforms in the sector and prioritise reforms aimed at resolving the immediate crisis while also addressing the structural aspects hampering the sector."
On Eskom, the minister said 28 municipalities will get support to settle the debt owed to the utility.
"Upon application by a municipality, the debt to Eskom up to 31 March 2023 will be written off over a three-year period in equal annual tranches.
"This is provided the municipality complies with set conditions. These conditions include enforcing strict credit controls, enhanced revenue collection, and up-to-date payment of monthly current account owed to Eskom."
Godongwana tabled his Medium-Term Budget Policy Statement on Wednesday.
