Godongwana did not deviate much from his predecessor Tito Mboweni, warning of the catastrophe that will result if SA doesn’t manage to reign in ballooning debt service payments and the need to cut wages while promising that the state will continue to play its role as a provider of social services.
Godongwana also said key ministers have reached a broad agreement to sell some of the state power utility’s coal-fired power plants to help reduce its debt burden. The accord comes two years after the plan was first raised in a National Treasury policy paper.