An investigation into the relationship between debt sustainability and fiscal support for Eskom

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dc.contributor.authorDlamini, Khethinkosi
dc.date.accessioned2020-10-14T09:50:34Z
dc.date.available2020-10-14T09:50:34Z
dc.date.issued2019
dc.descriptionA dissertation submitted in partial fulfilment of the requirements for the degree of Master of Commerce in Development Theory and Policy in the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, 2019en_ZA
dc.description.abstractEskom — South Africa’s state-owned electricity utility — is facing difficulty servicing the large debt obligations it has incurred over the last decade. This study investigated the trade-off between debt sustainability and the improvement in Eskom’s financial position. The empirical analysis is based on annual South African public finance data covering the period 2006/07 to 2016/17. The data analysis showed that the subsidies to the power utility did not detract from the underlying debt-sustainable public finance position. In fact, the analysis showed that the government subsidies improved Eskom’s valuation and profitability. Using simulations, a case was tested in which Eskom was provided with more subsidies instead of a loan guarantee, and the results showed that these subsidies would have further raised Eskom’s value while not harming the sustainable debt position of the public finances. Based on the results of this investigation it is recommended that the fiscal authorities employ the debt sustainability, guarantee valuation and cashflow techniques discussed in this report to evaluate whether issuance of a guarantee is aligned with the broader public finance objectives.en_ZA
dc.description.librarianTL (2020)en_ZA
dc.facultyFaculty of Commerce, Law, and Managementen_ZA
dc.format.extentOnline resource (51-56 leaves)
dc.identifier.citationDlamini, Khethinkosi Mbuyane (2019) 3 An investigation into the relationship between debt sustainability and fiscal support for Eskom, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/29824>
dc.identifier.urihttps://hdl.handle.net/10539/29824
dc.language.isoenen_ZA
dc.schoolSchool of Economic and Business Sciences Commerceen_ZA
dc.subject.lcshDebt--South Africa
dc.subject.lcshDebts, External--South Africa
dc.titleAn investigation into the relationship between debt sustainability and fiscal support for Eskomen_ZA
dc.typeThesisen_ZA
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