South Africa reduces Eskom debt relief package by a further $1.1 billion

By Reuters

South Africa said on Wednesday that it would reduce its debt relief package for state power utility Eskom by a further 20 billion rand ($1.1 billion) and would give some of its support in loans rather than taking on the company’s debt.

“Eskom is now in a much better financial position than in 2023 when the debt relief was originally announced. As a result of these improvements, we have decided to simplify the final phase of the debt relief package,” the National Treasury said in a revised annual budget.

Instead of taking on 70 billion rand of debt, the National Treasury will give Eskom 50 billion rand in loans.

The government previously reduced its support package by 4 billion rand after the utility failed to meet a deadline to dispose of its Eskom Finance Company.

Eskom said in December that it expected to turn profitable in 2025, its