Monday , July 22 2019
Home / africa / Eskom boosts R5.2 billion by borrowing

Eskom boosts R5.2 billion by borrowing



Fighting the utility, which supplies more than 90% of the country's electricity, said that on April 30, 2019, the liquidity position stood at 7.7 billion.

FILE: Photo: EWN.

JOHANNESBURG – Eskom, the electricity company, said on Friday it has raised R5.2 billion by absorbing part of the CDB's loans and issuing domestic bonds.

Fighting the utility, which supplies more than 90% of the country's electricity, said that on April 30, 2019, the liquidity position stood at 7.7 billion.

President Kiril Ramaphos said on Wednesday he would use a new five-year term to speed up economic reforms and fix the state-run disease-free energy company Escott a week after the APC party was re-elected with a reduced majority.

Analysts say reforms such as reducing bureaucracy and reviewing Eskom should be priorities for the ANC after the election, after a decade of slow growth and rising unemployment.

"We are in an economy that does not grow … in a noticeable way. That's what bothers us, "Ramaphosha told investors at a conference in Johannesburg, acknowledging that South Africa's regulatory framework has discouraged investment.

"We need to start reforms and accelerate," he added. "We will ensure that the security investors want to see is there."

Over the next three years, the government promised salvation for Eskom for 23 billion a year. The company has around $ 420 billion in debt last year.

"We have to deal with the issue of Eskom's debt, which is exactly what we are doing now with our treasury, with our creditors, because (Eskom) is too big to fail," Ramaphosa said.

The president also assured investors that government policy on land reform would not lead to "land grabbing."

"There is no way to invite foreign investors to come to our country – we say" come and invest "- and tomorrow we will take your land, it will not happen. That's not reasonable, "said Ramaphos.

South Africa faces a long-term problem of increasing growth due to bottlenecks in state-owned companies. The biggest is in Eskom, a power utility, which can take longer to bring the necessary electricity production in line with what is expected.


Source link