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IMF Rumors May Be the Scare South Africa Needs

  • Eskom’s finances a drain on the economy and the budget
  • IMF suggests allocating spectrum and simplifying visa rules
Electricity Round-Up As Eskom Is 'Threat' to South Africa Investment Strategy
Photographer: Waldo Swiegers/Bloomberg
Updated on

The threat of an International Monetary Fund bailout, unthinkable a few years ago, may force South Africa’s government to push through the reforms it needs to rescue the economy.

An expanded bailout for struggling power utility Eskom Holdings SOC Ltd. and calls from other state companies for support have strained the nation’s budget, prompting business groups and analysts to warn the country could be pressed to ask the IMF to help keep a lid on ballooning debt.