How big are Eskom’s needs? Almost certainly larger than taxpayers understand

Eskom is in debt to the tune of R420 billion.

That is larger than South Africa’s budget for health and education combined, and 8% of South Africa’s entire GDP.

Eskom went into this disastrous debt-spiral mainly due to the construction of two of the largest coal-fired power stations ever built - the dysfunctional Medupi and Kusile – and the pumped storage scheme Ingula.

The interest during construction is more than R100 billion.

Eskom can’t service the interest on its debt, as it does not make a profit.

It expects a loss of R20 billion for the 2018/2019 financial year.

Added to its woes is the ever-falling demand for electricity in response to the constantly above-inflation tariff hikes the energy regulator grants it.

The Money Show’s Bruce Whitfield asked George Glynos (Head of Research at ETM Analytics) how large Eskom’s needs are.

Listen to the interview in the audio below (and scroll down for quotes from it).

Eskom’s interest on debt… stands at R45 billion per year…

George Glynos, Head of Research - ETM Analytics

It’s not just about Eskom. There are many state-owned companies that are defunct…

George Glynos, Head of Research - ETM Analytics

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : How big are Eskom’s needs? Almost certainly larger than taxpayers understand


Recommended

by NEWSROOM AI
Read More
Tourism Grading Council of South Africa defends its grading system

Tourism Grading Council of South Africa defends its grading system

Bruce Whitfield interviews Darryl Erasmus, Chief Quality Assurance Officer at the Tourism Grading Council of South Africa.

'Do parties – especially the ANC – want to continue in the sea of mediocrity?'

'Do parties – especially the ANC – want to continue in the sea of mediocrity?'

Bruce Whitfield interviews Colin Coleman (MD, Goldman Sachs Sub Saharan Africa) and Busisiwe Mavuso (COO, Business Leadership SA).

You’re almost certainly – no matter what you believe - crap at investing

You’re almost certainly – no matter what you believe - crap at investing

Data shows that almost everyone sucks at investing, says Warren Ingram. Here's how to avoid shooting yourself in the foot.

Pravin Gordhan explains Eskom’s ‘winter plan’ to the nation on 'The Money Show'

Pravin Gordhan explains Eskom’s ‘winter plan’ to the nation on 'The Money Show'

The Money Show’s Bruce Whitfield interviews Gordhan about Eskom’s detailed winter plan, revealed by the Minister a few hours ago.

Eskom is slaughtering small businesses and the many jobs they support

Eskom is slaughtering small businesses and the many jobs they support

Small businesses – and their many employees – are facing a devastating winter thanks to Eskom, says the Small Business Institute.

Eskom to destroy 90 000 mining jobs, warns Minerals Council SA

Eskom to destroy 90 000 mining jobs, warns Minerals Council SA

The Money Show’s Bruce Whitfield interviews Henk Langenhoven, Chief Economist at Minerals Council South Africa.

Popular articles
How long to keep tax records available for inspection in South Africa

How long to keep tax records available for inspection in South Africa

Should you keep them "forever"? Tax expert Chris Sloane on the requirement to keep tax records available for inspection by Sars.

'SA's  decline over the past 12 years is similar to that of war-torn countries'

'SA's decline over the past 12 years is similar to that of war-torn countries'

CEO at Eunomix Claude Baissac says even though SA is ranked above these countries, its decline over the years is 'astounding'.

 What you should know before replacing a tyre

What you should know before replacing a tyre

Brent Lindeque took to social media earlier this month with a lengthy account of his experience at a Tyger Wheel & Tyre branch.

Capetonians: Here's your chance to sort out your traffic fines in one fell swoop

Capetonians: Here's your chance to sort out your traffic fines in one fell swoop

Mayco member for corporate services Sharon Cottle explains the Traffic Fines Roadshow at the Cape Town Civic Centre this week.