[ad_1]
Eskom needs to cut its debt from “a staggering R488 billion” to R200 billion so that it can “achieve independent financial sustainability”.
This is the opinion of André de Ruyter, CEO of Eskom Group, who delivered the keynote address at The Joburg Indaba on Thursday.
“Our financial model illustrates that Eskom can only achieve independent financial sustainability if its debt balance is reduced to R200 billion, a cash balance at closing of R30 billion and an Ebitda margin of 35%,” he said.
“Our debt amounted to a staggering R488 billion at the end of March 2020; as you can imagine, the interest bill on this is unsustainable and requires us to borrow money to pay interest. ”
De Ruyter said: “It is clear that a structural solution must be found,” despite capital assistance from the National Treasury.
He hinted that such a solution was on the way, as he was “encouraged by the positive progress made at Nedlac in this regard.”
Read De Ruyter’s full speech here.
Read: SA agrees to a pact to fix Eskom
