Eskom’s debt stood at R356.8-billion in 2021, according to the power utility’s last published annual financial statements. The government plans to take over a portion of Eskom’s debt and transfer it to its financial books. But this plan still has many holes in it.
After three years of promises and delays, the government has unveiled a broad plan to tackle Eskom’s smothering debt of nearly R400-billion.
But the plan still lacks many and specific details, which the government said will be unveiled in February 2023 during the main budget.
More broadly, the government plans to take over a portion of Eskom’s debt, National Treasury unveiled in the Medium-Term Budget Policy Statement on Wednesday. In practical ways, a portion of Eskom’s debt will be moved from the power utility’s financial books or balance sheet to that of the government.
A solution to Eskom’s debt problem was first promised in late 2019 by former finance minister Tito Mboweni. But for many years a credible debt solution was never announced while Eskom’s financial and operational problems worsened.
Eskom’s debt stood at R356.8-billion in 2021, according to its last published annual financial statements.
Taking over a portion of Eskom’s debt will give the utility…