South Africa: state-owned utility Eskom makes first profit in eight years

It's a silver lining for South Africa's electricity market and wider economy: utility Eskom made a 16 billion rand profit in the financial year ending in March 2025, the first since 2017. But some uncertainties remain.

South Africa's state-owned utility company Eskom has reported its first full-year profit since 2017. The electricity producer, Africa's largest, has been helped out of an eight-year long period of losses by government debt relief, higher tariffs and reduced power cuts.

For the financial year ending in March 2025, Eskom made a 16 billion rand profit, after having lost 55 billion rand just the year before.

Eskom also drastically reduced the number of power cuts, with just 13 days last financial year, down from more than 300 the year before, according to news agency Reuters.

While the turnaround in its financial performance has sparked hope for the company's future, its power outages have left a lasting mark on South Africa's economy, hindering growth and draining state resources for repeated bailouts.

Eskom has announced that it would reinvest its profits into electricity infrastructure. Yet despite the positive signs, the debt that municipalities owe to the company remains a dark cloud hanging over Eskom's future, as municipalities and metropolitan areas in South Africa have been struggling to contain their debt. They however represent 42% of Eskom's sales, according to news agency Reuters.