Eskom bumper bailout won’t be its last, analyst tells FT

EDINBURGH — The slow decay of Eskom barely attracted attention for at least a decade, with engineers excised from the utility giant in the late 1990s and early 2000s a sign that the government had not understood the central role of Eskom in the economy. But, thanks to former president Jacob Zuma forming a cosy friendship with Russia and Russian companies pushing the country to build a vastly expensive nuclear power programme, Eskom started appearing in the headlines with increasing frequency. Add to this the ongoing blackouts, which frustrate and anger business operators, and Eskom has become a dirty word in South Africa. Some would like to pull the plug on Eskom altogether. This week, finance minister Tito Mboweni unveiled details of how the government plans to nurse Eskom back to health, starting with the biggest ever government bailout – which some analysts reckon won't be the last. – Jackie Cameron

By Thulasizwe Sithole

South Africa has unveiled the largest bailout in the country's history for Eskom, the struggling state power monopoly on the brink of collapse, reports the Financial Times.

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