President Cyril Ramaphosa says Eskom’s latest financial results which show a return to profitability for the first time in eight years, is a testament to the value of staying the course and to the benefits of partnerships.
“The relative improvement in Eskom’s financial position reflects the significant recovery in Eskom’s operational performance,” President Ramaphosa said.
In his weekly newsletter, President Ramaphosa said Eskom’s improved financial position will enable it to invest in critical infrastructure and maintenance under its Generation Recovery Plan that has been pursued with diligence.
“There are plans to invest more than R320 billion in expanding existing infrastructure,” President Ramaphosa said.
The President said as the reliability of Eskom’s coal-fired plants has improved there has been less need to burn diesel, resulting in approximately R16 billion in savings on diesel costs.
“In the 2025 financial year, the country experienced loadshedding on just 13 days, down from 329 days the year before. Eskom is to be congratulated on this achievement.
“However, there are still serious challenges. Municipal debt arrears have grown by 27% since the previous financial year. That is why we continue to work with municipalities to come up with sustainable solutions that enable municipalities to settle their accounts with Eskom, as this is key to its financial viability,” President Ramaphosa said.
The President said with grid expansion being central to getting more capacity, Eskom, in partnership with the private sector, has plans to build approximately 14 000 km of new transmission lines over the next decade.
“On the road to achieving energy security, social partners will continue to be key. The role played by these partners in NECOM [National Energy Crisis Committee] and the Government Business Partnership has been invaluable.
“Two years since its inception, this collaborative model continues to yield results not only around energy but also in the other workstreams of transport and logistics, crime and corruption and youth unemployment,” President Ramaphosa said.
President Ramaphosa said the ongoing structural reform process represents consistency and resilience.
“We will continue along this recovery path across the economy to achieve our goal of inclusive economic growth that creates more jobs for our people,” he said.