NUCLEAR DEAL TO BOOST SOUTH AFRICA’S DEBT

SAFCEI warns SA’s government on the the result of its planned nuclear deal.

South African president, Jacob Zuma and the Minister of Energy on Tuesday was warned by the Southern Africa Communities Environment Institute(Safcei) that it was worried that the country’s nuclear planned deal would trigger a rise in the country’s debt.

A letter has been delivered to the office of the south African presidency and Minister of Energy according to the faith- based NGO.  this added burden to the country’s debt level would be due to potential investor disputes around South Africa’s intergovernmental agreements (IGAs) for nuclear power says Francesca de Gasparis which is the Executive Director of SAFCEI.

South Africa tends to have two strategic partnership agreements regarding to nuclear energy; the Russian Federation and the people’s Republic of China.

SAFCEI said South Africa will be spending R162 billion in 2017/18 on servicing its national debt, which tends to be more than what it spends on tertiary education or land reform and it is almost equal to social grants and health spending. Meanwhile the country’s debt to GDP ratio is at 50.7% of the GDP, up from  2008’s 27.8% and it is raising rapidly

According to de Gasparis,”We need to be sure that government fully understands the implications and costs of the nuclear deal, as well as the risk of potential investor disputes.”

She added that ”The power plants alone are estimated to cost over R1-trillion and already millions have been spent on the programme. Yet, South Africa still has nothing concrete to show for it.”

And included that,”SAFCEI is asking, on behalf of South African citizens, for an opportunity to make input into the government’s decision on how these agreements are to be tabled in Parliament”