The country needs to build and fund a R390-billion expansion of the national grid so it can connect more power plants.
outages that have hobbled the economy: it needs to build and fund a R390-billion expansion of the national grid so it can connect more power plants.
Funding the expansion appears beyond Eskom’s reach. The company’s coffers were systematically looted during former President Jacob Zuma’s almost nine years in office and it amassed more than R400-billion in debt before national treasury stepped in with a conditional bailout that severely constrains the loss-making utility from taking on additional loans.
South Africa began developing its electricity system more than a century ago, building power stations adjacent to rich coal deposits in the north-east of the country to provide the energy needed to extract gold and other minerals. Transmission lines were later added to connect up other parts of the country.
“At present, Eskom is not financially sustainable on a standalone basis and financial institutions are unlikely to provide additional funding in the absence of a government guarantee or other form of credit enhancements,” said Lindani Vezi, a listed credit investment analyst at Cape Town-based Futuregrowth Asset Management.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Africa: African Games - South Africa Overtakes Nigeria On Medals TableWhile Team Nigeria added three silver and four bronze medals, it wasn't enough to maintain their second-place position.
Read more »
South Africa: Taps Run Dry in Africa's Richest CityResidents of Africa's richest city, Johannesburg, are experiencing a severe water shortage in the middle of a summer heat wave.
Read more »
South Africa Emerges as America's Largest Trading Partner in AfricaSouth Africa has become America’s largest trading partner in Africa, with over $20-billion of two-way trade of goods. More than 600 American businesses now operate in South Africa. Africa's population is expected to grow significantly by 2050, presenting opportunities for investment. US Secretary of the Treasury Janet Yellen visited South Africa to strengthen ties between the two countries and continents.
Read more »
Africa: Ghana, South Africa Formalise Multi-Sectoral Engagements At Bi-National CommissionThe President of the Republic, Nana Addo Dankwa Akufo-Addo, has on behalf of the government and people of Ghana formalized engagements on education, health and mining under the Bi-National Commission.
Read more »
Former South African Striker Marks Maponyane Highlights Striker Crisis in South AfricaMarks 'Go Man Go' Maponyane, a former Bafana Bafana, Kaizer Chiefs, and Orlando Pirates striker, expresses concern over the lack of goals from strikers in the Premier Soccer League. He calls on coaches to address the issue and discusses the decline of South African strikers in recent years.
Read more »
South Africa: Mbeki Slams Zuma's Breakaway MK Party - South African News BriefsThabo Mbeki Slams Zuma's MK Breakaway
Read more »