Eskom wants more money after R242 billion in bailouts 

The South African government is exploring options to allow Eskom, the state-owned power utility, to breach its bailout agreement with the National Treasury and access billions of loans intended for carbon emissions reduction.  

The agreement, which involves the government taking over more than half of Eskom’s debt, includes conditions that restrict Eskom’s ability to take on additional debt and access loans for three years without written permission from the Finance Minister.  

However, international pledges of green funding aimed at helping South Africa transition away from coal have been put in limbo due to the bailout deal. To resolve this, the government has appointed a consultant to find a solution that would allow the funding to be disbursed without adversely affecting Eskom’s balance sheet. The government plans to present a report on potential solutions by August.  

Despite receiving significant bailouts and guarantees, Eskom’s financial situation has worsened, and the country has been experiencing frequent power outages. Former Eskom CEO Andre de Ruyter attributed part of the problem to corruption and mismanagement of funds. 

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