South Africa has begun discussions with the World Bank for a $1 billion loan to support Eskom’s transmission company and to upgrade Transnet’s railway infrastructure.that “discussions about discussions” began on Thursday during the International Monetary Fund and World Bank annual meetings in Morocco. He added, however, that there is no firm commitment yet from the global lender that the financing will be approved.
the government had provided R233.6 billion in bailouts for state-owned enterprises over the last five years and only received R1 million in dividends. According to the two utilities’ financial results, Eskom is R423 billion in debt, while Transnet is sitting on R130 billion, serviced at a cost of R1 billion a month.
This was revealed in a study by the GAIN Group, a boutique consultancy focusing on contract research of freight transport. “For Transnet to invest in its freight rail infrastructure and port infrastructure, they need money, while Eskom also needs money for the establishment of its new transmission company, and unfortunately the fiscus does not have that money,” he added.