Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      World Bank set to back South Africa’s big energy grid roll-out

      20 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Sita hits back at critics, promises faster, automated procurement

      20 June 2025

      The transatlantic race to create the first television

      20 June 2025

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Cosatu to present R254-billion plan to save Eskom

    Cosatu to present R254-billion plan to save Eskom

    By Agency Staff2 February 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    South Africa’s largest labour federation, Cosatu, will present its proposal to rescue state power company Eskom to senior members of government and the business community on Monday.

    The union group, an ally of the ANC, wants the government-owned pension fund, the Public Investment Corp, and state lenders, the Industrial Development Corp and the Development Bank of Southern Africa, to take over R254-billion of the company’s debt, Matthew Parks, Cosatu’s parliamentary co-coordinator, said in an interview on Friday.

    “We are ready for a fight,” Parks said, adding that the federation is aware there will be opposition to the plan. The alternative is that Eskom will collapse, causing economic pain and job losses, he said. The meeting on Monday will be with the so-called President’s Working Council, which includes government, business and labour leaders.

    The plan would leave the embattled power company with R200-billion of debt, an amount it has previously said it could manage

    The plan would leave the embattled power company that provides 95% of the country’s electricity with R200-billion of debt, an amount it has previously said it could manage. Eskom is failing to cover its running costs and inadequate maintenance is leading to frequent plant breakdowns and rolling power outages. Those are stalling economic growth.

    Cosatu represents 800 000 government workers, about four times its closest rival, and the PIC mainly manages the pension funds of civil servants. The PIC, which has more than R2-trillion under management, also manages unemployment and worker-compensation funds.

    Under the agreement, the PIC would provide the bulk of the debt relief, due to its size, and the government could also make a contribution depending on its finances, Parks said. The debt relief would include assuming about R104-billion of Eskom debt already held by the PIC, he said.

    Equity

    The lenders might get Eskom equity in exchange for the debt, he said, but details are still to be worked out. Senior ANC and government officials have received the proposals favourably, Parks said.

    The alternative, he said, was higher electricity tariffs and taxes. Tariffs have already risen 400% in recent years and there is little room to increase taxes, Parks said.

    Another option that could be considered in coming years is the use of prescribed assets, or private pensions, to fund state infrastructure, he said.  — Reported by Antony Sguazzin, with assistance from Paul Burkhardt, (c) 2020 Bloomberg LP



    Cosatu Eskom Matthew Parks top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleA cloud mastermind: Meet IBM’s new CEO, Arvind Krishna
    Next Article Load shedding to continue until at least Thursday

    Related Posts

    World Bank set to back South Africa’s big energy grid roll-out

    20 June 2025

    The little-known company disrupting Eskom’s monopoly

    16 June 2025

    Coal to cash: South Africa gets major boost for energy shift

    13 June 2025
    Company News

    Making IT happen: how Trade Link gears up to enable SA retail strategies

    20 June 2025

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.