Eskom’s $13.9 Billion Debt Plan Opens Up Power Provision
- South African Treasury to cover part of Eskom’s debt burden
- Treasury cuts economic-growth forecast for 2023 to 0.9%
The government will give Eskom three annual advances totaling 184 billion rand through March 2026.
Photographer: Waldo Swiegers/BloombergSouth Africa’s stricken power utility will receive 254 billion rand ($13.9 billion) in debt relief from the government over the next three years, provided it brings in private partners to help operate its plants and the electricity transmission network.
The package will strengthen Eskom Holdings SOC Ltd.’s balance sheet and cover all interest payments over the next three years, budget documents presented by Finance Minister Enoch Godongwana to lawmakers in Cape Town on Wednesday show. That will free up money for the utility to undertake plant maintenance and improve the transmission and distribution infrastructure as the country battles record electricity outages.