Budget Speech 2023

Madam Speaker,

The lack of reliable electricity supply is the biggest economic constraint.

Record levels of load shedding were experienced in 2022 - 207 days of load shedding compared to 75 days in 2021.

In response, we are acting decisively to bring additional capacity onto the grid. We are also working to transform the electricity sector to achieve energy security in the longterm.

As part of this, during the MTBPS we announced that the government will take over a portion of Eskom’s debt. We are doing this for two reasons:

Firstly, doing so will ease pressure on the company’s balance sheet, enabling it to invest in transmission and distribution infrastructure. It will also allow Eskom to conduct the maintenance required to improve the availability of electricity.

Secondly, R337 billion of Eskom’s debt is already government guaranteed. Explicitly taking on this debt, will reduce fiscal risk and enhance long term fiscal sustainability.