South Africa’s power utility Eskom may need more bailouts by the end of March 2020

PUBLISHED: Wed, 28 Aug 2019 14:11:42 GMT

CAPE TOWN (Reuters) – The South African government may be forced to inject more money into state power firm Eskom by the end of March next year, should the struggling utility fail to meet its borrowing plan, a National Treasury presentation to parliament said on Wednesday.

Treasury has already earmarked 59 billion rand ($3.9 billion) to Eskom over the next two financial years as part of a special appropriation bill, with 26 billion rand allocated until the end of March 2020.

“Failure to execute its funding plan may result in Eskom experiencing liquidity shortfalls at 31 March 2020 and require additional funding in addition to funding provided through the Special Appropriation Bill,” National Treasury’s director general, Dondo Mogajane, told lawmakers.

($1 = 15.2369 rand)

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.