Eskom signs loan deal with AfDB

JOHANNESBURG - Eskom signed a 20-year loan for US500 million with the African Development Bank (AfDB) on Monday as part of its capital raising plans, a statement from the power utility and the bank said.

AfDB vice president Mandla Gantsho said that by supporting Eskom’s expansion programme, the AfDB would seek to address not only the energy problem in South Africa, but also the whole sub-region, as Eskom was expected to play an important role in some key regional programmes.

Eskom finance director, Bongani Nqwababa said the extent and timing of the AfDB loan, reinforced the extent to which institutions based on the continent could provide support which fostered growth.

Eskom is getting a major facelift after supplies from the utility stuttered earlier this year, due to increased power supply demand and an infrastructure that could not cope.

- Sapa