Moody’s warn that Eskom’s problems could persist till 2020

PUBLISHED: Tue, 12 Feb 2019 18:04:46 GMT

Press release

Key points:

» The electricity system is currently under extreme pressure and the reserve margin is likely to remain tight until at least the mid-2020s

» The country will remain dependent on Eskom Holdings SOC Ltd (Eskom – B2 negative) for the foreseeable future, although its importance could gradually diminish

» Further growth in renewables, embedded generation and new capacity in gas from the mid-2020s, could ease system pressure

For the full report read: http://cnbc.africa/wp-content/uploads/2019/02/Moodys-South-Africs-energy-market-report-12-Feb.pdf

By Helen Francis, a Moody’s Vice President – Senior Credit Officer.

Content provided by Moody’s

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.