You are currently viewing our desktop site, do you want to visit our Mobile web app instead?

France reportedly ready to give financial support to Eskom

In aid of the restructuring of the utility.
Image: Waldo Swiegers/Bloomberg

France is weighing providing financial support to South Africa’s indebted utility Eskom, the Johannesburg-based newspaper Business Times reported.

South Africa plans to restructure loss-making Eskom, which is struggling under R450 billion of debt, by separating the power utility’s generation, transmission and distribution businesses. The company is seen as the biggest threat to the national economy and its last remaining investment-grade rating.

France is working on different plans to assist Eskom and with its own development agency is ready to provide financial support to assist with the utility’s restructuring, according to the Business Times, citing the French ambassador to South Africa, Aurelien Lechevallier.

The support would likely be structured as a multi-partner loan that could potentially include other nations such as Germany and South African development banks, the ambassador said.

© 2019 Bloomberg L.P.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   3

You must be signed in to comment.

SIGN IN SIGN UP

More Loans,,,,
This will just ensure they stay on the begging bowl. Paying off loans with new loans …

Most and above anything else we must get this clueless, interventionist Gov out of the energy sector completely.

We truly need in SA a TET, a Total Energy Transition.
Eskom is a Disastrous Dying Dinosaur, that has to be taken out of its misery ASAP.

It has a debt close to R 500 Billion, on top of that it received a bail out of something like R 20 or R 30 Billion this year, and another R 200 B of tax payers money is planned to be thrown at this hopeless entity in the next few years.
Eskom must be closed or liquidated ASAP, the power stations have to be sold at ANY cost to 3 or 4 private energy companies that will run them until they without doubt have brought new generation capacity online, as many of the existing fleet of power stations are old and poorly maintained.

Transmission has to be run by a separate company in which Gov can still have a max 45% share. Distribution and sales can be done by the 4 energy companies and separate smaller resellers of electricity.

The whole energy sector has to be deregulated, liberalised,
privatised and greened up. We should be able to get our power from our own roof top solar and be able to sell, feedback surplus to the grid,from a local mini grid, so called SSEG, or buy electricity from one of the 3 or 4 big energy companies that run the large power plants and supply the national system.

In such a scenario sector regulator NERSA should become a truly independent watchdog, to guard us from collusion and price fixing together with competition authorities, and together with environmental agencies prevent environmental disasters.

When getting a loan at any cost is an achievement you must know you are in a hole you wont get get out off again.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: