The South African government yesterday announced a wide-ranging support package for troubled state-owned power supplier Eskom, that will see it receive an equity injection and raise additional debt.
Eskom, which supplies 95 percent of South Africa’s electricity, has been struggling to meet growing demand, hobbled by years of underinvestment and ageing infrastructure.
“Eskom is facing significant challenges that threaten its sustainability,” the finance ministry said in a statement.
“Cabinet approved a package to support a strong and sustainable Eskom to ensure that the energy security of the country is maintained, as well as supporting GDP growth.”
The treasury said it would allocate funding to Eskom “to help relieve the impact on electricity consumers, as well as add additional support to Eskom’s balance sheet”. The size of the equity injection will be made public during budget announcements in October.
