South Africa’s Eskom posts $1.2bn loss with more expected

AFRICAN BUSINESS AND ECONOMYNovember 1, 2023 at 3:51 PM UTC

South Africa's state-owned power utility, Eskom Holdings SOC Ltd., has reported a net loss after tax of 23.9 billion rand ($1.2 billion) for the past financial year. This financial performance comes after a year marked by record electricity outages, and Eskom warns that there is no immediate turnaround in sight.

Eskom anticipates another loss of 23.2 billion rand in the 12 months through March 2024. This poor financial outlook is attributed to the underperformance of its power plants and delays in securing additional generation capacity from private producers.

The interim Chief Executive Officer, Calib Cassim, conveyed this information during a briefing in Johannesburg, highlighting the ongoing challenges faced by the utility as it seeks to stabilize its operations and financial position.

Key Takeaways

South Africa's energy crisis has deepened, and the situation may continue to deteriorate. A combination of delayed reforms and persistent allegations of corruption has created uncertainty and obscured a clear pathway for resolving the country's energy challenges. Eskom, the technically insolvent state-owned power company, has resorted to daily rolling blackouts, known as "load-shedding." This situation comes at a significant cost to the South African economy and society, as it disrupts daily life and business operations. The Eskom crisis has broader implications for the entire southern African region. South Africa, once a major exporter of electricity, is now seeking to import more power from its neighboring countries. This shift in energy dynamics affects regional energy stability and cooperation, underscoring the far-reaching consequences of Eskom's challenges on a broader scale. Addressing the Eskom crisis is not only critical for South Africa but also for regional energy security and economic stability.

South Africa

Eskom

Energy crisis