Pretoria: President Cyril Ramaphosa has hailed Eskom’s latest financial results, which indicate its return to profitability for the first time in eight years, as a testament to the benefits of strategic partnerships and perseverance. The President emphasized the improved operational performance as a key factor in the utility’s financial recovery.
According to South African Government News Agency, President Ramaphosa highlighted in his weekly newsletter that the improved financial status of Eskom will support further investment in critical infrastructure and maintenance through its Generation Recovery Plan. This plan involves a substantial investment of over R320 billion to expand existing infrastructure.
The President noted that the increased reliability of Eskom’s coal-fired plants has significantly reduced the need for diesel, saving approximately R16 billion in diesel costs. He pointed out the remarkable reduction in loadshedding days, with only 13 days of power cuts in the 2025 financial year compared to 329 days the previous year. However, he acknowledged that challenges remain, particularly the 27% growth in municipal debt arrears, which necessitates continued collaboration with municipalities to find sustainable solutions for settling accounts with Eskom.
President Ramaphosa also stressed the importance of grid expansion, revealing plans for Eskom, in conjunction with the private sector, to construct around 14,000 km of new transmission lines over the next decade. He underscored the crucial role of social partners within the National Energy Crisis Committee and the Government Business Partnership in driving progress across sectors, including energy, transport, logistics, crime, and unemployment.
In conclusion, President Ramaphosa reaffirmed the government’s commitment to ongoing structural reforms aimed at achieving inclusive economic growth and job creation for South Africans.