Africa’s biggest fund manager must ensure that state-owned power utility Eskom Holdings SOC Ltd. will operate profitably before its 92 billion rand ($5.48 billion) debt pile is converted to equity, said David Masondo, deputy finance minister.
“The PIC must ensure that the expected dividend earnings will be reasonably higher than the current interest earned on their loans,” Masondo told the City Press newspaper. “Eskom must meet certain conditions if converting PIC debt to equity is to be successful and sustainable.”
Eskom, which supplies almost all of South Africa’s power, has about 450 billion rand in debt and its revenue doesn’t match service costs. A proposal that the fund manager, which manages over 2 trillion rand, take a stake in the utility, was submitted to treasury this year, the PIC chairman Reuel Khoza said in June.
STAY IN THE LOOP
Subscribe to our free newsletter.
Tangled web of Eskom has little to do with electricity By MJ (Thinus) Booysen Follow 14 Dec 2022 2 Professor MJ (Thinus) Booysen is Research Chair in Internet of Things and Director of the MTN Mobile Intelligence Research Laboratory in the Faculty of Engineering, Stellenbosch University: www.thinus.co.za The technical and economic challenges in South Africa’s energy crisis […]
By Ethan van Diemen 26 Jul 2022 original article here President Cyril Ramaphosa on Monday night announced what he called an ‘energy action plan’ to tackle South Africa’s power crisis. This is what the plan entails. On Monday night, President Cyril Ramaphosa announced a set of actions to respond to South Africa’s yearslong energy crisis. “The […]
4TH JULY 2022 BY: TERENCE CREAMER original article here Electricity utility Eskom is developing a Web-based portal that will offer real-time visibility of locations in South Africa where new generators can be immediately or easily connected to the grid. The utility has, for the past three years, been arguing that between 4 000 MW and 6 000 MW of additional capacity is […]
Ramaphosa seeks solutions to power crisis outside of Eskom following backlash against the party over rolling blackouts
By Queenin Masuabi 04 Jul 2022 original article here The ANC’s National Executive Committee (NEC) sat for a virtual meeting on Monday in which a number of key issues were discussed – including Eskom and its inability to keep the lights on. Conversations around load shedding and Eskom took place on Monday during the ANC’s […]