France is weighing providing financial support to South Africa’s indebted utility Eskom, according to a newspaper report at the weekend.
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The power-supply situation in South Africa has taken a sudden turn for the worse, with Eskom said on Thursday evening saying it plans to implement overnight stage-2 load shedding from 10pm to 5am on Friday.
Eskom said it is disappointed by the decision as the current board and management “have worked painstakingly hard to try and resolve corporate governance issues of the past regime”.
Eskom warned on Monday night that forced blackouts could return at short notice due to the “unexpected loss of some generation units over the weekend”.
National treasury wants to forge ahead with long-stalled plans to sell state assets to shore up the nation’s shaky finances despite opposition from other government departments and labour unions.
The cost of propping up South Africa’s debt-stricken state power utility is mounting, placing severe pressure on the national budget and exacerbating the risk it poses to the nation’s finances.
The rand plummeted and bonds extended declines as investors faced the stark reality of what bailouts for the embattled state power utility will cost South Africa.
South Africa has unveiled its long-awaited plan to save its debt-stricken state power utility, including exposing it to greater competition, lowering fuel costs, increasing renewable energy output and selling non-core assets.
View the latest contribution from TechCentral cartoonist Jerm.
An economy stuck in the longest downward cycle since World War 2, chronic electricity shortages and soft business confidence – after 20 months running South Africa, patience is wearing thin with Cyril Ramaphosa.