By Johnathan Paoli
President Cyril Ramaphosa has hailed Eskom’s first return to profitability in eight years as a landmark achievement, describing it as proof of the value of persistence, structural reform, and broad-based partnerships.
In his weekly newsletter on Monday, Ramaphosa noted that Eskom’s latest financial results marked a turning point for the struggling power utility, which had faced mounting losses, ballooning debt, and existential threats just three years ago.
“The financial improvement at Eskom bears witness to the strength of these multi-sectoral partnerships, but also to the value of consistency and forging ahead with long-term goals, even in the face of strident criticism,” the president wrote.
When the National Energy Action Plan was announced in 2022, Eskom was in a dire state. The utility’s net loss after tax for the 2022/2023 financial year was R23.9 billion, while debt had soared past R300 billion.
Independent auditors at the time warned of “material uncertainty” regarding Eskom’s ability to remain a going concern.
The President said that the improved financial performance in 2025 is a direct result of better operational stability and strong collaboration between government, Eskom, and social partners.
He said that thanks to the collaboration between government departments, the stewardship of the National Electricity Crisis Committee (NECOM), and the hard work of Eskom’s leadership and staff, the organisation is turning the corner.
Eskom’s recovery has been underpinned by its Generation Recovery Plan, which prioritised infrastructure maintenance and improved reliability at coal-fired plants.
According to Ramaphosa, this reduced the reliance on diesel-burning open-cycle gas turbines, saving approximately R16 billion in fuel costs.
Another crucial indicator of progress has been the dramatic reduction in loadshedding. South Africa endured just 13 days of power cuts in the 2025 financial year, compared with 329 the year before.
The improved balance sheet will also allow Eskom to reinvest. The utility has announced plans to inject more than R320 billion into expanding existing infrastructure, with a particular focus on grid capacity.
Despite the good news, Ramaphosa acknowledged ongoing challenges, particularly municipal debt.
Arrears owed by municipalities have grown by 27% in the past year, placing renewed strain on Eskom’s finances.
The President stressed that Eskom’s recovery forms just one part of South Africa’s broader energy reform programme.
The Energy Action Plan was designed around four pillars: stabilising Eskom, procuring new generation capacity, encouraging private sector investment, and transforming the electricity sector.
A key milestone in this reform journey has been the Electricity Regulation Amendment Act, which came into effect in January 2025.
The Act opens the door to a competitive electricity market by allowing for Eskom’s unbundling into separate generation, transmission, and distribution companies, while encouraging private investment.
The expansion of the transmission network remains central to securing South Africa’s energy future.
Eskom, in partnership with private sector investors, is planning to construct around 14 000 kilometres of new transmission lines over the next decade, which will help connect new renewable energy projects to the grid and address long-standing bottlenecks.
Ramaphosa attributed much of Eskom’s turnaround to the partnership-driven model adopted in recent years.
NECOM and the Government Business Partnership, which bring together government, labour, business, and civil society, have helped steer reforms not only in energy but also in transport, logistics, anti-corruption initiatives, and youth employment.
The President said Eskom’s recovery is part of a larger economic agenda focused on inclusive growth and job creation.
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