South Africa’s state-owned company, Eskom Holdings, received a ZAR4 billion ($339 million) loan from Germany’s state-owned development Bank, KfW, back in July 2023.
A statement from National Treasury back in November 2022, said South Africa, France and Germany signed loan agreements for the two European nations to each extend €300 million in concessional financing to South Africa, to support the country’s efforts to reduce its reliance on coal.
Although the loan will allow Eskom to address loadshedding and also fasttrack the implementation of renewable energy, a statement from National Treasury also said the funds will go towards the further development of the power utility’s transmission grid in the Northern Cape and Western Cape provinces.
Earlier in February 2023, Eskom received a bailout from Government of about 16 billion rand ($852 million).
This amount is divided into the following, and is charged against the National Revenue Fund:
: (a) R78 billion for the 2023/24 financial year; (b) R66 billion for the 2024/25 financial year; and (c) R40 billion for the 2025/26 financial year.
According to the Eskom Transmission Development Plan for 2021 to 2029, an amount of about R372 billion, was initially required.
About R200 billion is needed to expand and strengthen the country’s constrained electricity grid, Electricity Minister Kgosientsho Ramokgopa, said at the BRICS Summit held in Johannesburg, in August 2023.
An estimated R1.2 trillion is required to fund the Just Energy Transition.
Eskom reported the following revenue, net loss and total assets over the last 2 years:
Net loss of R25 billion (FY2021) and R12, 3 billion (FY2022).
Total assets increase R 781 billion (FY2021) and R801+ billion.
Revenue increase of R 135.4 billion (FY2021) and R144. 84 billion (FY2022).
Picture: Eskom and Green Building Africa