https://en.sputniknews.africa/20241220/eskom-forecasts-first-profit-in-eight-years-amidst-ongoing-challenges-1069819852.html
Eskom Forecasts First Profit in Eight Years Amidst Ongoing Challenges
Eskom Forecasts First Profit in Eight Years Amidst Ongoing Challenges
Sputnik Africa
South Africa's energy situation is gradually improving, as shown by recent achievements. In the past, the country faced frequent and prolonged blackouts as a... 20.12.2024, Sputnik Africa
2024-12-20T18:07+0100
2024-12-20T18:07+0100
2024-12-20T18:07+0100
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South African power utility Eskom expects to report a full-year profit of over 10 billion rand ($546 million) for the year ending March 2025, marking a significant turnaround after eight years of losses.CEO Dan Marokane attributed the anticipated profit to operational improvements, reduced load shedding, and a government debt-relief package worth 250 billion rand ($13.6 billion) over the medium term.While the company reduced its diesel spend by 11.9 billion rand ($648 million) and saw gross debt decrease by 11.7 billion rand ($638.4 million) to 412.2 billion rand ($22.5 billion), challenges remain. Municipal debt has ballooned to 95 billion rand ($5.1 billion), and Eskom continues to face internal corruption issues.The utility is investigating widespread fraud in its electricity token vending system, which contributed to losses of 23 billion rand ($1.2 billion) last year. The scheme allegedly involved collaboration between insiders and external actors.Eskom’s ongoing reforms, including its separation into three entities for generation, transmission, and distribution, aim to make the utility more efficient. However, as Marokane pointed out, rooting out corruption remains a significant obstacle to achieving long-term stability.
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eskom, corruption, investigation, economy, south africa, southern africa, finance, electricity, energy, debt, debt relief
eskom, corruption, investigation, economy, south africa, southern africa, finance, electricity, energy, debt, debt relief
Eskom Forecasts First Profit in Eight Years Amidst Ongoing Challenges
Christina Glazkova
Writer / Editor
South Africa's energy situation is gradually improving, as shown by recent achievements. In the past, the country faced frequent and prolonged blackouts as a preventive measure to avoid a disastrous collapse of the national power grid.
South African power utility Eskom expects to report a full-year profit of over 10 billion rand ($546 million) for the year ending March 2025, marking a significant turnaround after eight years of losses.
CEO Dan Marokane attributed the anticipated profit to operational improvements, reduced
load shedding, and a government debt-relief package worth 250 billion rand ($13.6 billion) over the medium term.
“This year was a painful year but it was also a building year in terms of our path to recovery,” Marokane said.
While the company reduced its diesel spend by 11.9 billion rand ($648 million) and saw gross debt decrease by 11.7 billion rand ($638.4 million) to 412.2 billion rand ($22.5 billion), challenges remain.
Municipal debt has ballooned to 95 billion rand ($5.1 billion), and Eskom continues to face internal corruption issues.
The utility is investigating widespread fraud in its
electricity token vending system, which contributed to losses of 23 billion rand ($1.2 billion) last year. The scheme allegedly involved collaboration between insiders and external actors.
“It’s still a very delicate investigation going on,” Marokane noted, adding that the fraud has hindered efforts to stabilize the company’s financial position.
Eskom’s ongoing reforms, including its separation into three entities for generation, transmission, and distribution, aim to make the utility more efficient. However, as Marokane pointed out, rooting out corruption remains a significant obstacle to achieving long-term stability.
