Tag ArchivesEskom

Maarten Ackerman

Eskom wage hikes unsustainable, says economist

High levels of debt and muted demand for electricity mean that above-inflation wage increases for Eskom workers are simply not sustainable in the long-term, especially if South Africa is to avoid further credit ratings downgrades, warns Citadel Chief Economist Maarten Ackerman. (more…)

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Africa for Africans (with a little help from China)

By Terence Gregory, CEO Ecsponent Limited On Tuesday, China pledged to invest $14.7bn in South Africa and grant loans to Eskom and SAA. While this investment brings the country closer to President Ramaphosa’s target to raise US$ 100 billion in foreign direct investment, some argue that China’s intentions are not what they seem. It is said […]

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Ian Matthews, Head of Business Development at Bravura

‘Eskom poses systemic risk to South African economy’

Eskom brought out a JSE stock exchange announcement earlier this week warning its bondholders that there may be more bad news relating to irregularities when Eskom releases its financial results for the year ended March 31, likely to be released later this month. Eskom said that disclosure on the quantum of the uncovered reportable irregularities and […]

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electricity

Take adequate steps to protect property during load shedding

Short-term insurer Santam, says South Africans need to mitigate the damages caused by load shedding by being prepared prior to power going off. Eskom has announced that rotational load shedding will be on-going for the next ten days due to the power grid needing to stabilise following strike action. In light of this, Santam has identified […]

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electricity

Early round IPP projects remain attractive funding opportunities 

By Corneleo Keevy, head of credit risk management at Ashburton Investments  The recent appointment by President Ramaphosa of Jeff Radebe as Energy Minister provided some promise that the uncertainty surrounding the Renewable Energy Independent Power Producers Programme (REIPPP) would be resolved. (more…)

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electricity

NERSA allowed R85bn a year in Eskom runaway costs – OUTA

Non-profit civil action organisation, OUTA, says that the conduct of the National Energy Regulator for South Africa (NERSA) over the past decade, more specifically its inability to hold Eskom to account over runaway costs on both capital projects and operational expenditure, has lumped South Africans with an unnecessary burden of R85bn per annum for the […]

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electricity

Fitch Downgrades Eskom to ‘BB-‘

THE FULL STATEMENT FROM FITCH RATINGS: Fitch Ratings has downgraded Eskom Holding SOC Ltd’s (Eskom) Long-Term Local Currency Issuer Default Rating (IDR) and unguaranteed local currency senior unsecured ratings to ‘BB-‘ from ‘BB+’ and maintained them on Rating Watch Negative (RWN). Fitch has also affirmed the government-guaranteed local currency senior unsecured debt ratings at ‘BB+’.  […]

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electricity

Eskom’s grueling turnaround possible, says OUTA

OUTA says Eskom’s Interim Financial Statements (IFS) to September 2017 raise both hope and concern, following years of mismanagement that has left Eskom with a massive debt and a compromised liquidity position. “However, the recent turn of events after the appointment of the new leadership has sparked new hope with the new board’s apparent determination […]

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