South Africa

Eskom posts R55 billion loss, yet projects R10 billion profit by 2025

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.

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38 children in South Africa have died from food poisoning

Since February, 38 children in South Africa have tragically died from food poisoning. According to South African police, food poisoning incidents have been reported nationwide, particularly in Gauteng province, due to contaminated products sold at local “spaza” shops. The police confirmed that a total of 41 people, including 38 children, have lost their lives to food poisoning, and three individuals are currently under prosecution in connection with the cases. Most of the poisonings have been linked to items such as chips and biscuits sold at spazas. In response, Velenkosini Hlabisa, Minister of Cooperative Governance and Traditional Affairs, announced that the deadline for spazas to renew their operating licenses has been extended to February 28, 2025, as part of a broader effort to improve inspections. The term “spaza” refers to small convenience stores in informal settlements, derived from the Sotho word “zula,” meaning “to hustle.” These stores, often operated by foreign nationals, have become central to the food poisoning issue since February. In light of the ongoing crisis, the government declared a national state of disaster last month and has been ramping up regulations and inspections of spazas. The initial 21-day deadline for license renewals ended on December 17.

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