The ANC is pumping up Moody's decision to bump Eskom's credit rating as proof that their energy reforms are working. The power utility has been keeping the lights on without load shedding for months and got financial help from a massive government bailout that lets them fix their aging infrastructure instead of drowning in debt.
South Africa also got upgraded by S&P for the first time in almost twenty years because tax collection has been solid and the budget situation looks better. Fitch kept their rating steady, but everyone seems to think things are moving in the right direction. Lower borrowing costs mean more money for actual projects instead of just paying off interest.
The government says it needs to keep pushing reforms and add more generation capacity to make sure Eskom stays healthy. Experts reckon stable electricity could boost GDP growth by a full percentage point if they can maintain the momentum and get more renewable energy online.
South Africa also got upgraded by S&P for the first time in almost twenty years because tax collection has been solid and the budget situation looks better. Fitch kept their rating steady, but everyone seems to think things are moving in the right direction. Lower borrowing costs mean more money for actual projects instead of just paying off interest.
The government says it needs to keep pushing reforms and add more generation capacity to make sure Eskom stays healthy. Experts reckon stable electricity could boost GDP growth by a full percentage point if they can maintain the momentum and get more renewable energy online.
