South Africa’s Eskom in a debt crisis

02 August 2021 | Business

ALEXANDER WINNING

A debt crisis at South Africa's struggling state-owned utility Eskom could be solved by an agreement for government creditors to write off some of their loans in exchange for climate pledges and an equity injection, a deputy minister said on Friday.

But one analyst was sceptical about the idea, describing it as unrealistic. Officials in Africa's most industrialised nation have grappled for years with ways to lower Eskom's debt burden, which stood at R401 billion in March.

The company, which regularly implements power cuts that hold back economic growth, racked up the debt partly to pay for two mega coal plants dogged by delays and cost overruns.

Two options previously discussed are transferring some Eskom debt to the sovereign balance sheet or moving a portion to a special purpose vehicle.

But in comments at a meeting of the presidential climate commission, South Africa's Deputy Finance Minister David Masondo said he did not support those ideas.

Under the last proposal, creditors would forgive some sovereign loans in exchange for commitments to curb Eskom's emissions by closing some of its coal units and an equity injection into Eskom.

Masondo said the ideas were his personal views, not necessarily the official position of the National Treasury.

The National Treasury acknowledged an emailed request for comment from Reuters but did not answer questions in time for publication. An Eskom spokesman declined comment.

Peter Attard Montalto, head of capital markets research at Intellidex, said Masondo's suggestions risked confusing investors as they did not represent National Treasury or Eskom thinking. -Nampa/Reuters

Similar News

 

Heimstädt steering road safety

18 hours ago | Business

Rivaldo KavangaHorst Heimstädt is the CEO of the Namibia Road Safety Forum, a private organisation which does extensive work in the Southern African Development Community...

FNB to strengthen its support to MSMEs

18 hours ago | Business

PHILLEPUS UUSIKUProparco, a private sector financing arm of Agence Française de Développement Group (AFD Group), granted a EURIZ portfolio guarantee of N$ 68 million to...

Rising like a phoenix

18 hours ago | Business

Mariselle StofbergWilhelmine Mutorwa has used every opportunity she is given to become the best version of herself. For Wilhelmine Mutorwa, giving up has never been...

Digital marketing training underway countrywide

18 hours ago | Business

Michelline Nawatises The Namibia University of Science and Technology (NUST), through the Centre for Enterprise Development (CED) and in collaboration with the Deutsche Gesellschaft für...

COMPANY NEWS IN BRIEF

18 hours ago | Business

ABB lowers sales guidanceABB lowered its full-year sales outlook on Thursday, as the Swiss engineering and technology group became the latest company to flag shortages...

Startup Leo Canopus digitalising communities

1 day - 21 October 2021 | Business

STAFF REPORTERLeo Canopus was among the seven startups selected in early March, for an initiative by the Namibia Business Innovation Institute (NBII) titled the NBII...

Kapana Cook-Off competition winners crowned

1 day - 21 October 2021 | Business

STAFF REPORTERWindhoek resident, Kristy Shomongula, became the seventh winner of the Nedbank Kapana Cook-Off competition. The final which took place at Shanghai Park Lounge on...

COMPANY NEWS IN BRIEF

1 day - 21 October 2021 | Business

Halliburton posts Q3 profitUS oilfield firm Halliburton Co on Tuesday posted its third consecutive quarterly profit and said customer spending in the United States could...

Challenges ahead on ICT highway

2 days ago - 20 October 2021 | Business

Jo-Maré Duddy – Always on the look-out for a solid home for at least 45% of their assets under management, Namibian institutional investors will likely...

Understanding double taxation agreements

2 days ago - 20 October 2021 | Business

Anneri Lück - In my previous articles I gave an overview of some of the important considerations when operating across jurisdictions. One of the...

Latest News

Heimstädt steering road safety

18 hours ago | Business

Rivaldo KavangaHorst Heimstädt is the CEO of the Namibia Road Safety Forum, a private organisation which does extensive work in the Southern African Development Community...

FNB to strengthen its support...

18 hours ago | Business

PHILLEPUS UUSIKUProparco, a private sector financing arm of Agence Française de Développement Group (AFD Group), granted a EURIZ portfolio guarantee of N$ 68 million to...

Learners don maize sacks for...

18 hours ago | Education

TUYEIMO HAIDULA OSHAKATI Learners at Omuthiyagwiipundi Combined School in Omuthiya are forced to wear maize sacks each time they misbehave at...

Itula changed, says suspended Smith-Howard

18 hours ago | Politics

Staff Reporter WINDHOEKSuspended Independent Patriots for Change (IPC) Swakopmund constituency councillor Ciske Smith-Howard says her party leader, Dr Panduleni Itula, has become...

The face of the southern...

18 hours ago | People

Michelline Nawatises Victoria Ndemupa Muhuura was born in Wavis Bay. She attended at Andimba Toivo ya Toivo Secondary School in the Oshana Region, and...

Zozo’s Leather: Your dream product

18 hours ago | People

Rivaldo Kavanga Celesty Cupido worked in the tourism industry and realised over the years that many Namibian accommodation establishments do not showcase or sell...

Rising like a phoenix

18 hours ago | Business

Mariselle StofbergWilhelmine Mutorwa has used every opportunity she is given to become the best version of herself. For Wilhelmine Mutorwa, giving up has never been...

Africa calls for climate finance...

18 hours ago | Economics

ALESSANDRA PRENTICEAfrican countries want a new system to track funding from wealthy nations that are failing to meet a US$100-billion annual target to help the...

EDITORIAL: We are guilty of...

18 hours ago | Opinion

A lot needs to be discussed in our country – from race and sexual rights to abortion. The country can’t stop talking, even when such...

Load More