Share

Gordhan sounds warning on SOE financial health

Johannesburg - Finance Minister Pravin Gordhan said on Friday that the domestic and global growth outlooks remained bleak and sounded a warning about the financial health of state-owned companies, which include power utility Eskom.

"As a country we are operating in a global environment that is not going to see growth of 4.5 or 6 percent for a long time to come," Gordhan told a job creation summit in Johannesburg.

Africa's most advanced economy narrowly avoided downgrades to subinvestment status in a round of reviews by the three major ratings agencies in the first half of the year, but is teetering on the brink of recession.

The economy contracted 1.2% in the first quarter as mining shrank and a severe drought took its toll on agriculture.

Gordhan said the country needed to boost investor confidence by reducing uncertainty in economic policy and improving governance at state-owned firms.

"State-owned entities have guarantees to the tune of just over half a trillion rand with the state," Gordhan said.

"The key concern that ratings agencies and others would have is that as a result of levels of mismanagement, those guarantees shouldn't be called out at any stage."

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders