(3 Minutes Read)
Eskom’s supply stabilised, with no power cuts reported for the past nine months which has sparked optimism. Going by the current trend, it is expected to earn a profit of over R10 billion for the fiscal year ending March 2025.
Eskom, South Africa’s state utility, reported a loss of R55 billion (USD 3 billion) for the fiscal year ending March 2023. The underperformance of the company has been stifling the economic growth of South Africa.
To boost the efficiency of Eskom, President Cyril Ramaphosa initiated a massive restructuring plan in 2019. The company is being split into three units—generation, transmission, and distribution. The heavy losses incurred by the company in the fiscal year 2023 are attributed to the underperformance of the coal power stations, heavy debts, escalating municipal arrears, inadequate tariffs, and the separation of its transmission unit. The company spokesperson reported that the company posted revenue growth of 14% for the year ending March 2024 despite these challenges. Though revenue rose by 14% to R295.8, billion, sales volumes dropped 3% due to 329 days of scheduled power cuts.
Also Read;
https://trendsnafrica.com/south-africa-reopens-key-border-crossing-with-mozambique/
Eskom’s supply stabilized, with no power cuts reported for the past nine months which has sparked optimism. Going by the current trend, it is expected to earn a profit of over R10 billion for the fiscal year ending March 2025. The anticipated financial rebound of the company has boosted business confidence.
