Ramaphosa hails Eskom’s turnaround as power of partnerships, planning
President Cyril Ramaphosa has hailed Eskom’s return to profitability for the first time in eight years as a testament to the power of partnerships and long-term planning. has hailed Eskom’s return to profitability for the first time in eight years as a testament to the power of partnerships and long-term planning.
In his weekly newsletter, Ramaphosa noted that when the National Energy Action Plan was announced in 2022, Eskom faced losses of R12.3 billion and debt exceeding R300 billion, with auditors flagging "material uncertainty relating to Eskom’s ability to continue".
"The relative improvement in Eskom’s financial position reflects the significant recovery in Eskom’s operational performance," the president said, praising the collaboration between government departments, the stewardship of the National Electricity Crisis Committee, and the efforts of Eskom’s leadership and staff.
Eskom’s improved finances are expected to enable significant investment in infrastructure and maintenance, with over R320 billion planned under the Generation Recovery Plan.
The president highlighted that better reliability at coal-fired plants has reduced the need for diesel, saving approximately R16 billion, while load shedding in 2025 occurred on just 13 days, compared to 329 days the year before.
Despite the progress, Ramaphosa acknowledged ongoing challenges, particularly municipal debt arrears, which have increased by 27% since the previous financial year.
He emphasised continued collaboration with municipalities to ensure sustainable solutions and safeguard Eskom’s financial viability.
Ramaphosa also underlined the government’s efforts to transform the electricity sector, including accelerating new generation capacity, attracting private investment, and implementing structural reforms.
He noted that the Electricity Regulation Amendment Act, which came into effect in January, allows for the restructuring of Eskom into separate generation, transmission, and distribution units, while encouraging private sector participation to benefit consumers.
"Eskom, in partnership with the private sector, has plans to build approximately 14,000 kilometres of new transmission lines over the next decade. The financial improvement at Eskom bears witness to the strength of these multi-sectoral partnerships, but also to the value of consistency and forging ahead with long-term goals, even in the face of strident criticism," Ramaphosa wrote.
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