EXCLUSIVE | The Treasury is working on a credible solution to Eskom’s R400bn debt burden

Eskom’s debt of R400 billion was mainly raised to finance the construction of Medupi and Kusile

The National Treasury is working on a solution to restructure Eskom’s R400 billion debt burden, which it hopes to present to the Cabinet Ministers’ Committee on the Budget by October.

The issue of what to do with Eskom’s debt has been a major issue for SA’s risk profile and budget since 2018. However, no progress was made due to uncertainty in the government about the path to be taken. This is the first time the Treasury Department is doing the technical work to study what debt relief for Eskom would mean for the Fiscus and under what conditions it could credibly be carried out.

It follows Finance Minister Enoch Godongwana’s commitment in the February budget that a solution to the Eskom debt would be completed within a year. Godongwana also said it was up to Eskom to take steps to fix itself by selling assets and cutting costs to show it wouldn’t be in the same situation again later.

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