On October 1, 2025, Eskom, South Africa’s state-owned power company, announced a R16 billion profit for the financial year ending March 2025.
This marks its first profit since 2017, reversing a R55 billion loss from the previous year.
Key Drivers
Government debt relief, higher tariffs, and a sharp drop in power outages fueled the recovery. Eskom reduced blackouts to just 13 days last year, compared to over 300 the year before, boosting reliability.
Economic Impact
Eskom’s past outages have slowed South Africa’s economy, straining growth and requiring frequent bailouts. The profit signals hope for stability in the energy sector, critical for economic progress.
Reinvestment Plans
Eskom plans to channel the profits into upgrading its aging electricity infrastructure, aiming to enhance service delivery and prevent future disruptions.
Lingering Challenges
Despite the gains, unpaid municipal debts remain a concern. Local governments, accounting for 42% of Eskom’s sales, struggle to clear their dues, threatening the utility’s financial stability.
Why It Matters
Eskom’s turnaround is a boost for South Africa’s economy, but addressing municipal debt is crucial to sustaining this progress and ensuring reliable power supply.
What’s Next
In 2025, Eskom will focus on infrastructure investments while tackling municipal debt to secure its financial future and support national growth.
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