South Africa
South Africa’s struggling state-owned monopoly power utility company, Eskom is set to receive a bailout.
The debt-laden firm will receive 4.9 billion US dollars, the biggest bailout in the nation’s history after the government stepped in to prevent its collapse.
According to Finance Minister Tito Mboweni, the emergency funds will be meted out over three years.
“We are setting aside 23 billion rand a year to financially support Eskom during its reconfiguration. The fiscal support, this is very important, is conditional on the appointment of an independent chief reorganization officer, who will be jointly appointed by the minister of finance and the minister of public enterprises,” said Mboweni.
Recently, South Africa battled with the worst power cuts in several years designed to prevent a total collapse of the overstretched electricity grid.
In regards to this, the government is considering splitting Eskom into three companies, generation, transmission and distribution.
Reuters
01:28
Earth Day Org calls for 60% reduction in plastic production by 2040
Go to video
How South Africa's former leader Zuma turned on his allies and became a surprise election foe
01:00
South Africa inflation eases in March
01:13
Kenya power delivers cheaper electricity bills for residents
02:08
South Africa: Zuma's prosecution bid against Ramaphosa postponed
01:25
Zimbabwe unveils new currency as depreciation, inflation stoke turmoil