Eskom owed over R600m in back payments from neighbouring countries

Minister of Public Enterprises Pravin Gordhan has said that debt-laden power utility Eskom is owed a combined R632m by three neighbouring countries for providing electricity. 

Gordhan, in written reply to a question from Democratic Alliance MP Denis Joseph, said the debtors were 

  • Zimbabwe Electricity Supply Authority (Zesa) of Zimbabwe - which owes R322m;
  • Zesco of Zambia - which owes R221m; and 
  • Electricidade de Mocambique (EDM) - which owes R89m.

Eskom, which has a total debt burden of R450bn, has for years experienced difficulties in collecting money owed to it electricity it has already provided. It is owed about R25bn by South African municipalities, many of which are financial trouble.

Gordhan said none of the funds owed to Eskom by the power utilities of neighbouring countries were in dispute. "Eskom's clients acknowledge their debt and attribute economic challenges as well as financial constraints as the cause of their delays in settling the outstanding debt," Gordhan said.

The minister included a submission from Eskom in his written reply, which said Zimbabwe's economic challenges meant it was  unable to honour its debt obligations.

"Eskom and Zesa currently have a payment plan agreement for the settlement of the debt and Zesa is paying off the debt as per the agreement," the submission said. Eskom said it supplies EDM with standby power. 

ZAR/USD
16.74
(+0.37)
ZAR/GBP
21.06
(+0.73)
ZAR/EUR
19.02
(-0.10)
ZAR/AUD
11.67
(+0.07)
ZAR/JPY
0.16
(+0.69)
Gold
1808.51
(+0.50)
Silver
19.29
(+2.84)
Platinum
845.00
(+2.60)
Brent Crude
43.05
(0.00)
Palladium
1997.18
(+2.37)
All Share
56199.46
(+1.41)
Top 40
51874.81
(+1.41)
Financial 15
10703.82
(+2.21)
Industrial 25
76910.63
(+1.02)
Resource 10
53327.86
(+1.61)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 2000 votes
I am taking a hit, but should be able to recover in the next year
23% - 2617 votes
My finances have been devastated
35% - 3921 votes
It's still too early to know what the full effect will be
25% - 2807 votes
Vote