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South Africa: Eskom sets date for transmission company to begin operations

Published

1 year ago

August 24, 2023

South Africa’s state utility company, Eskom has revealed that its transmission company will be operational by the first quarter of fiscal year 2025.

The situation with the country’s electricity has been critical in recent months and load shedding exercises have gone as high as twelve hours a day.

This year, primarily as a result of failures in its outdated coal-fired power plants, Eskom has executed its worst-ever power cutbacks.

According to Eskom’s presentation on Thursday, between 2023 and 2026, the state energy company plans to install 21,000 megawatts (MW) of new power by 2026. It will purchase 3,400 MW from nearby nations.

Earlier today, the Electricity Regulation Amendment Bill, a necessary legislation that is essential to resolving SA’s energy problem, was presented in Parliament after stalling for nearly five months. The law is considered an essential next step in the unbundling of Eskom and creation of a competitive electricity market.

But there are serious concerns about whether the bill will be approved by parliament before the present administration ends.

Zet Luzipo, the chair of the portfolio committee for mineral resources and energy, claims that this is because the law may be “highly contested” and because there must be numerous lengthy and perhaps politically charged public hearings.

Related Topics:Eskom Featured South Africa

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IMF mission concludes 4th loan program assessment in Egypt

Published

9 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.