S.Africa plans $870 mln funding for Eskom by June -Treasury - CNBC Africa

S.Africa plans $870 mln funding for Eskom by June -Treasury

Southern Africa

by Reuters 0

Eskom urgently needs about 250 billion rand to upgrade its ageing infrastructure. PHOTO: Pond5

This is according to a finance ministry spokesman, and is a part of its strategy to raise funds for the power company.

Pretoria said in October it would sell “non-essential assets” to raise 20 billion rand of funding for Eskom, which urgently needs about 250 billion rand to upgrade its ageing infrastructure.

“National Treasury has already identified a viable strategy to raise the required amount of funding that could be executed,” treasury spokesman, Jabulani Sikhakhane said, confirming a Bloomberg report based on an interview with Finance Minister Nhlanhla Nene in Davos.

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“Due to the commercial sensitivities involved, we cannot provide details. However the process is proceeding to plan,” Sikhakhane added.

Nene told Bloomberg TV at the World Economic Forum the government had identified assets to sell and the first cash injection of 10 billion rand was expected by about June.

The treasury has said it will give details on the sales in the national budget review in February. Sources told Reuters in December the government was considering relinquishing shares of firms such as mobile operator Vodacom and fixed-line provider Telkom.

(READ MORE: South Africa utility Eskom says reserves exhausted, power outages inevitable)

Eskom said last week it expected the power grid to remain constrained for the next two to three years, raising the likelihood of more rolling blackouts in Africa’s most developed, but ailing, economy. 

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