South Africa’s Treasury appeals for more bailouts for Eskom

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The South African government may be forced to inject more money into state power firm Eskom by the end of March next year, should the struggling utility fail to meet its borrowing plan, a National Treasury presentation to parliament said on Wednesday.

National Treasury’s director general, Dondo Mogajane, told lawmakers in Cape Town that the aim was to prevent Eskom from experiencing liquidity shortfalls by 2020.

Treasury has already earmarked 59 billion rand ($3.9 billion) to Eskom over the next two financial years as part of a special appropriation bill, with 26 billion rand allocated until the end of March 2020.

“Failure to execute its funding plan may result in Eskom experiencing liquidity shortfalls at March 31, 2020 and require additional funding in addition to funding provided through the Special Appropriation Bill,” Mogajane said.

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