South Africa’s government has revealed plans to potentially provide more financial support for the struggling state power provider, Eskom.
The company is struggling to stay in business, a situation that has seriously affected its capacity to provide consumers with power.
In February the government announced that Eskom will receive a $1.6 billion bailout.
This was to help give some lifeline to the company which has witnessed financial challenges resulting in power cuts to businesses and homes.
The country’s finance minister made the announcement when presenting the 2019 Budget in parliament.
Tito Mboweni told lawmakers then that more support to Eskom would depend on South Africa’s economic growth, electricity tariffs and the company’s strategy.
He stressed that the government cannot take on the $7bn debt of Eskom.
But Public Enterprises Minister Pravin Gordhan on Wednesday told reporters that there are considerations within the government to provide additional financial support for Eskom,
“A variety of options are before us, and serious consideration is being given to all of them at the highest levels of government,” Gordhan said at Eskom’s Lethabo power station.
Gordhan added that “once we have finessed the package, we will let you know either before the election (in May) or soon thereafter.”
Eskom this year was reported to be technically bankrupt, according government officials.
The company generates, transmits and distributes approximately 95% of the electricity used in South Africa.
It also plays a role in approximately 45% of the electricity used in Africa.
But there were fears the company will not operate beyond April due to its financial situation.
Source: Africafeeds.com
