South Africa’s $21bn grid expansion faces funding crisis

South Africa's ambitious plan to modernise its power grid and transition from coal to renewables is facing significant hurdles. The state-owned Eskom needs $21 billion to expand its aging grid, but securing investment is challenging due to the utility's dire financial state and high debt. With private investors wary and donor funding uncertain, officials are exploring alternative financing methods to overhaul the grid and meet the country's energy needs.

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By Tim Cocks

South Africa's plan to expand its power grid, now the biggest bottleneck to replacing coal with renewables, has hit a snag: finding investors to lend the necessary $21 billion to a near-bankrupt state monopoly.

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