Posted on 12/31/2019 4:54:39 AM PST by karpov
JOHANNESBURG—Growing problems at South Africa’s state-owned enterprises are pushing major companies toward bankruptcy and subjecting the continent’s most developed economy to rolling blackouts that are choking growth.
Earlier in December, flagship carrier South African Airways narrowly avoided collapse after the government loaned it 2 billion South African rand ($137 million) and ordered a restructuring. The cash injection came as South Africans watch eye-popping testimony from a national commission where witnesses allege corruption at the airline and other state-owned companies under former President Jacob Zuma.
The airline’s plight reflects the broader malaise of the country’s mismanaged and heavily indebted state-owned companies that new President Cyril Ramaphosa has pledged to fix. His government also recently provided a 59 billion rand bailout of state-owned power utility Eskom. The inability of the company to generate sufficient power has left parts of major cities like Johannesburg and Cape Town without electricity for up to 8 hours a day. The government also placed the state-owned Passenger Rail Agency of South Africa under administration, a form of bankruptcy protection.
The escalating crisis and its impact on the public finances is a threat to South Africa’s economy, which contracted 0.6% in the third quarter. The country has but one remaining investment-grade credit rating. Eskom’s debt—about 450 billion rand—represents almost 9% of South Africa’s gross domestic product.
“Now we’re on the cliff’s edge,” said Peter Attard Montalto, head of capital markets research at Intellidex, a South African research firm. “It’s really gluing sentiment to the floor.”
After Mr. Ramaphosa last year succeeded Mr. Zuma—who denies wrongdoing—investors backed efforts by the former protégé of Nelson Mandela to repair the damage caused by corruption that came to be known as “state capture.” Mr. Ramaphosa has struggled to boost growth or significantly reduce an unemployment rate of 27%
(Excerpt) Read more at wsj.com ...
Free Nelson Mandela!
Enjoy the diversity
White man had.
Free everything!!!!!
I ain’t gonna play Sun City!
We all knew it was only a matter of time. And as things get worse more whites will leave and the downfall will accelerate. The Chinese will be happy to come in and help out for a price.
Free Mandela with the purchase of the value meal!
Corruption in state owned businesses? Surprise, surprise, surprise....
When you are in that region, you see a lot of stuff being financed by Taiwain, some ANZAC/England, and A LOT of Islam related projects going in. This is happening throughout the area in South Africa, eSwatini, Lesotho, Mozambique and Zimbabwe. We are keeping tabs on all of it though...
In this lovely new US Embassy in Ezulwini, Hhohoho, eSwatini (a nation about 2/3 the size of New Jersey, with 1 Million people, a polygamous easily bought absolute monarch, and no significant economic, cultural, or technological ties to the US). https://goo.gl/maps/cDAuhFW46LJDf8w48 It is 6 stories tall, and has another 3? 4? stories under ground, with direct LoS to the airport at Matstapha, just southeast of the embassy.
I don’t get it, the Blacks took over and confiscated all the Farms, Factories and Industries owned by the evil White Men, they should be doing great ??
I’m shocked I tell ya, shocked!!!
They are going to loot the country and then complain there is nothing left to steal
Coming soon to the West Coast.
This is what happens after Socialism takes over and “other peoples money” that has been built up by Capitalism runs out.
White people did build that.
Too bad they had to flee for their lives....
No Bail Out from us. Absolute Power failure. They’re dead but don’t know it yet.
Send Charlize Theron back to fix it. She is so proud of what SA has become since Mandela was freed and started the ball rolling into running country into the ground.
SA used to be one of the jewels of Africa along with Rhodesia.
Combining black rule with socialism destroyed them both.
L
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.