The Winners & Losers in South Africa’s Budget

South African Finance Minister Enoch Godongwana’s budget benefited from rising precious mineral prices and increased tax collection. But these positive tailwinds aren’t expected to continue as the country battles frequent power outages, deteriorating rail and port infrastructure and unpredictable fuel prices.

To shore up the economy, Godongwana is giving consumers and companies tax relief to encourage them to generate renewable energy, which should ease the load on embattled state-owned power provider Eskom Holdings SOC Ltd. At the same time, he’s discouraging the use of dirty energy with increased carbon taxes and appears intent on reining in the state’s runaway wage bill.