In South Africa, the debt of Eskom, the national electricity company, has increased further, by $ 1.5 billion over the past year. It thus increases to $ 29 billion. The coronavirus crisis and the obsolescence of the power plants are the main causes of this situation.
In South Africa, the debt of Eskom, the national electricity company, grew by 26 billion rand ($ 1.5 billion) in one year, according to documents sent to Bloomberg . The national electricity company has indeed increased its debt from 454 to 480 billion rand ($ 29 billion).
In the past year, Eskom has taken out a syndicated loan of R15 billion from commercial banks, a loan of R7 billion from the China Development Bank and a facility of R5 billion from the Public Investment Corp.
The increase in these debts comes at a time when Eskom is struggling to meet its operating expenses, including the payment of debt service despite the financial support allocated to it by the government. In addition, the lack of maintenance of its old power plants led to the return, in July, of series of load shedding after four months of continuous energy supply thanks to the economic slowdown caused by the pandemic.
Source: Agence Ecofin