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Eskom bailout will not solve South Africa power crisis

Thursday, March 9, 2023


The deal will see the state assume or help pay ZAR254bn (USD13.7bn) of Eskom’s debt and comes amid a debilitating increase in breakdowns of generating capacity that mean the ailing utility cannot supply enough power to meet demand.


  • Eskom’s dire performance will remain a major drag on the economy.
  • Eskom’s debt package will be funded largely through new government borrowing, which will slow sovereign debt consolidation efforts.
  • Curbing corruption and sabotage at power plants could make a meaningful difference to power supply, but this looks unlikely to happen.

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