Tue, 21 Jan 2020

SA allocates Eskom extra R59bn over two years

22 Jul 2019, 22:14 GMT+10

South Africa will give ailing state-owned power utility Eskom an additional R59 billion spread over two years, according to a copy of a special appropriations bill seen by Bloomberg.

Eskom will get R26 billion of the money this financial year and R33 billion in 2020-21.

Key Insights

President Cyril Ramaphosa announced plans for additional funding for the struggling company last month, without providing details.

Finance Minister Tito Mboweni was due to announce the proposal tomorrow.

The funds will come from the Revenue Fund, according to the bill.

The government had already approved a R69 billion, three-year bailout for the debt-laden company in February. Eskom has debt of R440 billion and is regarded as the biggest risk to South Africa's economy.

The government has been under pressure to finalise plans to fix the business. A spokesperson for National Treasury wasn't immediately able to comment.

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