Is Chinese loan to South Africa’s Eskom in jeopardy?

JOHANNESBURG (Reuters) – South Africa’s public enterprises ministry on Thursday said that a China Development Bank (CDB) loan to struggling state power company Eskom was not in jeopardy.

Eskom had expected to draw down 7 billion rand ($481 million) from a $2.5 billion CDB loan facility by late March, but South Africa’s finance ministry said in a report to parliament last month that the drawdown had been delayed.

The South African government and Eskom are working to ensure the transfer of funds from CDB to Eskom, the public enterprises ministry said in a statement.

($1 = 14.5500 rand)

Reporting by Alexander Winning; Editing by David Goodman

Related Content

Here are four ways South Africa can get more power generation capacity

Plagued by power cuts and with its infrastructure in desperate need of revamping, South Africa’s struggling state power utility Eskom says the country desperately needs an additional 5,000 megawatts (MW) of generating capacity.

#LoadShedding: South Africa’s Eskom moves power cuts to Stage 6

"We regret and sincerely apologise that stage 4 loadshedding will move to Stage 6 loadshedding as from 18:00 today, as a result of a shortage of capacity" - Eskom

What you need to know about South Africa approving $4 billion bailout for debt-laden power utility Eskom

Crisis-hit South African power company Eskom was handed an additional 59 billion rand ($4 billion) lifeline by parliament on Tuesday, prompting criticism from opposition parties who described it as a "blank cheque".

South Africa’s rand takes a tumble as Eskom plans nationwide power cuts

South Africa's rand tumbled after state power utility Eskom said it would implement nationwide blackouts for the first time in more than six months due to capacity shortages.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

What Does The Future Of Air Travel Look Like?

Of all the industries the coronavirus pandemic has affected, the airline industry is among those that have been hit the hardest. According to the International Air Transport Association, airlines' passenger revenue is estimated to sink by over $300 b

Fitch expresses doubt over SA’s debt consolidation plans

Just last week finance minister Tito Mboweni outlined the emergency budget to nurse South Africa through the Covid-19 crisis. A big part of this budget was a plan for South Africa to get its debt under control within four years. Fitch Ratings, the agency that downgraded South Africa in April doubts whether South Africa can do this. CNBC Africa’s Chris Bishop spoke to Jan Friederich, Senior Director of Fitch Ratings for more.

Rwanda, USAID sign over $643.8 mn deal to support trans-formative development

Rwanda has signed a financing agreement with the USAID worth about $643.8 million to support Rwanda’s development efforts in the next five years. Moreover, Rwanda Convention Bureau announced the reopening of meetings and conferences. Edwin Ashimwe, Journalist with The New times joins CNBC Africa for more.

How COVID-19 is reshaping Kenya’s education system

On the continent, there has been an increased awareness of the impact of cultural practices on educational achievement that has challenged the education systems. In Kenya, the government is investing in all forms of education; however, experts have noted that for the rise of automation and technological advancements to be effective, an updated skill set is required. Ayub Odida, Researcher at ACAL Consulting joins CNBC Africa for more.

Partner Content

Sanlam launches urgent job-preservation initiative in response to COVID-19

Sanlam Investments is responding to the COVID-19 pandemic through large-scale support of the recovery of South African companies, from small enterprises to...

Is Market Volatility Here For The Foreseeable Future?

Content provided by CompareForexBrokers Prior to understanding why market volatility might be here to stay for the foreseeable future,...

Trending Now

Land Bank default forces S.Africa’s central bank into $200 mln bailout of state investment arm

JOHANNESBURG (Reuters) - South Africa’s central bank has issued a 3.45 billion rand ($200 million) guarantee to bail out the Corporation for...

Zimbabwe’s Landela agrees to buy state-owned gold mines, seeks more assets

HARARE (Reuters) - Zimbabwe’s Landela Mining Venture has reached agreements to take over and revive four idle state-owned gold mines and is...

How Zimbabwe farmers will be trained how to farm with a scheme from Belarus with love

When the farm invasions were unleashed by the people in power in 2000, it led to bloodshed and random confiscation that reaped a bitter harvest of lost production and exports that persists until this day. That year with all of its fumbling fury fuelled with the idea that to get rich you merely had to own a farm, is always seen as a turning point for the industry. It created a large slice of the country’s GDP and as it fell, so did the fortunes of Zimbabwe.

South Africa’s National Treasury says “no further action” to bailout SAA airline

CAPE TOWN (Reuters) - South Africa’s National Treasury said on Friday there was “no further action” planned to bailout struggling national airline...
- Advertisement -