Eskom is turning the corner,’ says Ramaphosa as utility returns to profitability

Eskom

Pretoria – President Cyril Ramaphosa says Eskom’s return to profitability for the first time in eight years is a major sign of progress and proof that partnerships between government, business and labour are key to solving South Africa’s energy crisis.

Writing in his weekly From the Desk of the President newsletter on Monday, Ramaphosa said the utility’s improved financial results are “a testament to the value of staying the course and to the benefits of partnerships.”

“When we announced the National Energy Action Plan in 2022, the national power utility’s losses stood at R12.3 billion and its debt had ballooned to over R300 billion,” he said. “At the time, Eskom’s auditors noted that there was ‘material uncertainty relating to Eskom’s ability to continue.’”

The president said the improvement in Eskom’s finances reflects “the significant recovery in Eskom’s operational performance,” crediting the collaboration between government departments, the National Electricity Crisis Committee (NECOM), and the utility’s leadership and staff.

“Thanks to the collaboration between different government departments, the stewardship of NECOM and hard work by the leadership and staff of Eskom, Eskom is turning the corner,” Ramaphosa wrote.

According to the president, the improved financial standing will allow Eskom to invest more than R320 billion in critical infrastructure and maintenance under its Generation Recovery Plan. The plan has already seen gains in plant reliability and reduced diesel usage — saving around R16 billion in fuel costs.

“In the 2025 financial year, the country experienced loadshedding on just 13 days, down from 329 days the year before,” he said. “Eskom is to be congratulated on this achievement.”

However, Ramaphosa warned that municipal debt remains a major challenge, with arrears growing by 27% over the last financial year. “We continue to work with municipalities to come up with sustainable solutions that enable them to settle their accounts with Eskom, as this is key to its financial viability,” he said.

The president also highlighted broader structural reforms under way in the energy sector. “The Electricity Regulation Amendment Act that came into force in January is a step towards progressively opening up the sector and paves the way for a more competitive electricity market,” Ramaphosa said.

Working with private partners

He explained that the legislative changes allow Eskom to be restructured into separate generation, transmission and distribution entities, opening the door for greater private sector investment.

To expand grid capacity, Eskom — working with private partners — plans to construct about 14,000 kilometres of new transmission lines over the next decade.

Ramaphosa credited the National Electricity Crisis Committee and the Government-Business Partnership for their “invaluable” role in tackling not just energy issues, but also challenges in transport, logistics, crime and youth unemployment.

“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,” he said.

The president concluded by saying government would continue to pursue reforms that ensure inclusive growth and job creation. “We will continue along this recovery path across the economy to achieve our goal of inclusive economic growth that creates more jobs for our people,” Ramaphosa said.

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