South Africa’s state utility, Eskom, reported a massive R55 billion ($3 billion) loss for the fiscal year ending March 2023, largely due to a one-time charge related to the separation of its transmission unit. Despite this setback, Eskom is optimistic about its future, projecting a R10 billion profit for the fiscal year ending March 2025.
The utility is undergoing a major restructuring, splitting into three units—generation, transmission, and distribution—as part of President Cyril Ramaphosa’s 2019 reform plan. Eskom attributed its losses to underperforming coal power stations, unsustainable debt, rising municipal arrears, and insufficient tariffs.
On a positive note, Eskom saw a 14% increase in revenue, reaching R295.8 billion for the year ending March 2024. However, sales volumes fell 3% due to 329 days of load-shedding, which has hampered South Africa’s economic growth.
In a positive development, Eskom’s power supply has stabilized, with no power cuts in the past nine months, raising hopes for economic recovery. This improvement in reliability has enhanced business confidence, and Eskom is hopeful for a financial turnaround by 2025.