French institution pours R2.3 billion into Eskom

The 25-year-old facility will be used to finance investments for grid strengthening, refurbishment, reliability improvements, minor reticulations, split metering and upstream grid reinforcement to cater for renewable energy.

In addition, Eskom also concluded a tripartite financial partnership agreement amounting to R6.8 million with Electricite de France (EDF) and AFD. The funding provided by AFD through this agreement will be in the form of a grant and is the first-ever grant for which Eskom is the key beneficiary.

Eskom qualified for the grant by virtue of being one of the largest partners of AFD in Africa.

“The grant will finance a knowledge exchange and expertise from EDF on various areas specific to power utilities ranging from distribution to renewable energy integration and key recommendations to improve its performance in terms of system efficiency and reliability,” said Martha Stein-Sochas, regional director of AFD.

Speaking during the signing ceremony, which was attended by France ambassador Elisabeth Barbier, Eskom Group chief executive, Brian Molefe said, “Eskom has always enjoyed a fruitful relationship with the Agence Francaise de Development and the agreements further cement this relationship. We look forward to sharing knowledge and good practice with our peers,” said Molefe.

The facility will go towards financing Eskom’s distribution projects in Kwazulu-Natal, Eastern Cape and Limpopo provinces.

AFD is a public financial institution that implements the policy defined by the French government, and works to combat poverty and promote sustainable development. AFD operates on four continents via a network of 72 offices and supports projects that improve living conditions for the general populace, boosts economic growth and protects the planet.

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