South Africa’s ANC Looks to Unemployment Fund to Rescue Eskom
- Bailout proposal runs into opposition from labor unions
- Eskom is struggling with a debt burden of 484 billion rand
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South Africa’s ruling party has proposed using state-run unemployment and compensation fund surpluses to help rescue the country’s debt-laden power utility, raising the ire of labor unions.
In discussion documents released late last week, the African National Congress said the Unemployment Insurance Fund and the Compensation Fund had combined surpluses of 225 billion rand ($15 billion) in 2019. Instead of investing this in listed companies and government bonds it should instead be used for “economic reconstruction” the party said. Power utility Eskom Holdings SOC Ltd. has debt of 484 billion rand.