Eskom offered R20bn backed by asset sales

Finance minister Nhlanhla Nene’s medium-term budget policy statement speech said the government would inject at least R20bn ($1.82bn) into Eskom, but only once the struggling national utility had sold some non-strategic assets. The funding will be deficit-neutral, with Eskom only to receive the funds after the non-strategic asset sales. Nene added that, “if necessary”, the funds could be raised through the conversion to equity of part of the government’s existing R60bn loan to the company. The funds form part of a larger government package aiming to stabilise the company’s woeful finances.