Eskom grid expansion to cost taxpayers hundreds of billions 

Expanding South Africa’s electricity grid is projected to cost the country hundreds of billions of rands over the next five years.  

Eskom, the state-owned electricity utility, estimates it will need around R100 billion for grid expansion in the upcoming financial year and the amount is expected to increase annually, reaching R170 billion in 2029. Eskom’s current financial state, with over R400 billion of debt, isn’t robust enough to support this grid expansion.  

The New Development Bank, formed by the BRICS nations, is willing to provide loans to state-owned enterprises involved in the grid’s expansion. The government is creating a separate transmission company, the National Transmission Company of South Africa, to manage the grid and raise debt for its expansion. 

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