The rand weakened, leading emerging-market currency declines against the dollar on Tuesday, as the government unveiled a rescue plan for Eskom.

The rand fell 1% to R14.71/US$ by 12.11pm in Johannesburg. Yields on benchmark 2026 government bonds rose three basis points to 8.2%.

A policy paper released by public enterprises minister Pravin Gordhan on Tuesday envisions Eskom relinquishing its almost century-old near-monopoly of the electricity industry.

As a first step, its transmission unit will be hived off while remaining under the control of a state holding company, a move that will make it easier for private generators to supply the national grid.