Dark days, but light at the end of the tunnel for Eskom’s finances
Eskom has been handed yet another lifeline by Finance Minister, Enoch Godongwana.
This time the total debt relief arrangement will amount to R254 billion, more than half of the power utility's current debt.
Eskom's debt currently stands at a whopping R423 billion.
Godongwana presented his 2023 budget vote in Cape Town on Wednesday.
"We are proposing a total debt-relief arrangement for Eskom of R 254 billion. This consists of two components. One is R184 billion. This represents Eskom’s full debt settlement requirement in three tranches over the medium term. Second is a direct take-over of up to R70 billion of Eskom’s loan portfolio in 2025/26. Because of the structure of the debt relief, Eskom will not need further borrowing during the relief period,” he said.
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"Government will finance the arrangement through the R66 billion baseline provision announced in the 2019 Budget, and R118 billion in additional borrowings over the next three years."
The budget comes at a time when the country is battling some of the worst loadshedding in history under CEO Andre de Ruyter.
In 2022 the country experienced a total of 207 days of rolling blackouts, compared to 71 the previous year.
