The astonishing cost of propping up Eskom
received close to half a trillion rand in state support since it started imposing debilitating nationwide blackouts in 2008.
The series of cash injections and a planned takeover of a portion of Eskom’s loan portfolio will amount to R495.6-billion in the financial year to March 2026, national treasury said in response to e-mailed questions. The figure includes finance minister Enoch Godongwana’s R254-billion relief package for Eskom, which was announced in February and hinges on the debt-laden company meeting pre-determined performance targets meant to wean it off its reliance on public finances.Godongwana last Friday ruled out any further cash injections for the company that’s struggling to produce enough power to meet demand.
Straying from the latest debt-relief plan would test the credibility of South Africa’s fiscal framework and budget processes in a country with a full house of junk credit ratings. It would also rattle investors who have placed a premium on the currency because of the slow pace of economic reforms, severe power rationing and logistics-network constraints that are eroding the nation’s growth prospects.has subjected the country to blackouts for all but one 24-hour cycle this year.
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.
Eskom has received close to half a trillion rand of taxpayers’ moneyEskom has survived on government bailouts since at least 2008.
Read more »
Hamilton Ratshefola, IT industry stalwart, has died - TechCentralHamilton Ratshefola, a leading figure in South Africa’s IT industry, has passed away.
Read more »
Kenya launches Earth observation satellite atop SpaceX rocket - TechCentralKenya has launched its first-ever operational Earth observation satellite.
Read more »
Gungubele seeks to intervene at broke Post Office - TechCentralGovernment has requested more information from the state-controlled Post Office about financial problems that threaten its survival.
Read more »
Google 'racing' to build new AI tools for Search - TechCentralGoogle is working to build a new search engine and add artificial intelligence features to its existing offerings, the New York Times reported.
Read more »
Livestream of the SpaceX Starship launch - TechCentralSpaceX made final preparations early on Monday to launch its powerful new Starship rocket system to space for the first time.
Read more »