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Sat, 23 Nov 2019 01:50 GMT

$5 Billion Loan from South African Government to State Power Firm

Business

7Dnews London

Wed, 20 Feb 2019 22:15 GMT

South Africa's finance minister said his government would lend the ailing state electricity company, Eskom, 69 billion rand ($4.9 billion) to help repay its debts.

Eskom's debt is currently estimated at about $30 billion, which has hampered its ability to supply a stable power supply to the country. 

This came as Finance Minister Tito Mboweni delivered the 2019 budget to parliament and explained that the loan would help the state company provide adequate electricity to its customers.

South Africa has suffered several power cuts in recent weeks because of the inability of Eskom to generate sufficient power.

Economists say Eskom’s current status poses a grave threat to South Africa's economy, which has experienced slow growth over the past five years. 


Africa