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Ramaphosa tells investors in Davos 'we will fix Eskom'

23 January 2019 - 19:50 By SUNITA MENON
Eskom's Medupi power station.
Eskom's Medupi power station.
Image: Business Times

Eskom will release a turnaround strategy in the coming weeks, President Cyril Ramaphosa told delegates at the World Economic Forum in Davos on Wednesday.

At the helm of Team SA, Ramaphosa told investors that the government had changed the boards and executive management in strategic state-owned entities and was working closely with the new leadership, particularly at Eskom, on the implementation of credible turnaround strategies.

“We are currently developing a response to the financial and operational crisis at the country’s electricity utility, Eskom. In the next few weeks, we will be announcing a set of measures to stabilise and improve the company’s financial position and to ensure uninterrupted energy supply,” he said.

Eskom is in deep financial crisis and is unable to pay the interest on its R419bn debt burden out of the revenue it generates. The power utility is acknowledged as the single biggest risk to SA’s economy by the Treasury, credit ratings agencies and the investment community.

The restructuring of Eskom, including a substantial debt bailout and its separation into three parts, was put to the ANC lekgotla on Saturday as the first step towards dramatic changes to save the company.

- BusinessLIVE