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Eskom’s Recovery Plan Saves South Africa Over R16 Billion and Sparks Economic Optimism

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In a historic milestone, South Africa has gone 300 days without load shedding for the first time since June 2018, thanks to Eskom’s Generation Recovery Plan. The achievement has saved the country over R16 billion in diesel expenditure, significantly improving business confidence and economic prospects.

The state-owned utility announced the news on Tuesday, crediting the improvement to enhanced electricity generation and operational efficiencies. Compared to the R26 billion spent on diesel in the previous year, Eskom’s ability to produce more electricity has resulted in significant financial savings.

“This incredible feat is a testament to the dedication of our 40,000 skilled employees,” said Eskom’s Group Executive for Generation, Bheki Nxumalo. “We are focused on achieving a full year without load shedding by March 26, 2025.”

Eskom’s Generation Recovery Plan has reduced unplanned outages, increased the energy availability factor by 7%, and improved operational efficiency.

“These achievements have not only saved us R16.42 billion in diesel expenditure but have also placed Eskom on the path to long-term profitability,” Nxumalo added.

The improvement in electricity availability has positively impacted business confidence and public sentiment. According to Eskom’s Group Chief Executive, Dan Marokane, the lack of load shedding has reassured credit rating agencies, banks, and business leaders.

“This recovery is a key contributor to South Africa’s projected GDP growth of up to 2% in 2025,” Marokane said. “We are reinvesting the savings to drive further efficiencies and ensure Eskom’s operational sustainability.”

Economic Growth and Public Confidence

The Minerals Council echoed Eskom’s sentiments, highlighting the economic benefits of consistent electricity supply.

“Stable electricity availability will boost economic growth in 2025, with GDP expected to grow between 1.5% and 2%,” said Andre Lourens, an economist at the Minerals Council. “This stability removes a major constraint on mining activity and fosters broader economic growth.”

Public sentiment towards Eskom has also shifted positively, with businesses reconsidering their reliance on self-generation. This marks a new era of trust in Eskom’s ability to meet the country’s power needs.

Eskom’s focus remains on maintaining operational stability and achieving one year without load shedding by March 2025. With the utility’s continued progress, South Africa is poised for economic growth, stronger business confidence, and a brighter energy future.

What are your thoughts on Eskom’s milestone?

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