Ramaphosa- After nearly a decade marked by rolling blackouts, executive instability, and the devastating effects of state capture, Eskom has finally emerged from financial turmoil. South Africa’s power utility has returned to profitability, a milestone President Cyril Ramaphosa attributes to coordinated government efforts and the dedication of Eskom’s leadership and staff.
Writing in his weekly newsletter, Ramaphosa praised the work of the National Electricity Crisis Committee (NECOM), which was established to address the country’s ongoing electricity challenges. According to the President, the collaborative work of this committee—alongside the resilience shown by Eskom’s management and employees—has enabled the utility to “turn the corner.”
“Eskom’s return to financial health is a testament to the value of staying the course and the benefits of strategic partnerships,” Ramaphosa said.
The recently released financial results from Eskom show that the utility recorded a profit of R23.9 billion before tax for the 2025 financial year. This marks a dramatic improvement from the R25.5 billion loss recorded in 2024 and is the first full-year profit in eight years.
President Ramaphosa pointed out that when the National Energy Action Plan was launched in 2022, Eskom was in a dire financial position. At that time, the power utility was grappling with R12.3 billion in losses and a ballooning debt of over R300 billion. The company also faced reputational damage stemming from years of state capture and governance issues.
Now, with improved financial stability, Eskom is in a better position to invest in infrastructure upgrades and essential maintenance—two factors crucial to ensuring a more reliable power supply.
Strategic Investment Plans Backed by Ramaphosa’s Government
Ramaphosa revealed that the government has plans to support Eskom’s investment of over R320 billion in expanding and upgrading its energy infrastructure. This funding will enable Eskom to increase its generation and transmission capabilities, helping the utility meet the country’s growing energy demands.
One of the most significant aspects of the investment is the planned construction of 14,000km of new transmission lines over the next ten years. According to Ramaphosa, this expansion is “central to unlocking new capacity and integrating renewable energy projects into the grid.”
“We must ensure that our grid is capable of accommodating a diversified and growing energy mix,” Ramaphosa emphasized.
This development aligns with South Africa’s broader shift toward renewable energy and sustainability, goals that Ramaphosa’s administration has made a cornerstone of its long-term economic recovery strategy.
Throughout his presidency, Ramaphosa has maintained that fixing Eskom is key to unlocking South Africa’s economic potential. The load shedding crisis had not only strained households and businesses but had also deterred investment and hampered GDP growth.
By prioritizing Eskom’s recovery through NECOM and the Energy Action Plan, Ramaphosa has helped lay the foundation for a more stable and reliable energy future. This includes reforms to open up the energy market, encourage private sector participation, and fast-track the development of renewable energy projects.
“The progress we have made at Eskom shows what is possible when we work together with purpose and urgency,” Ramaphosa wrote.
President Ramaphosa has reiterated that Eskom’s recovery is just one part of a much broader national energy reform strategy. In addition to bolstering Eskom’s financial health, his administration is actively working to:
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Accelerate the rollout of independent power producers (IPPs),
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Strengthen the regulatory environment,
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Improve energy efficiency across industries, and
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Ensure a just transition to cleaner energy sources.
The return to profitability not only strengthens Eskom’s balance sheet but also restores a measure of public confidence in the utility’s ability to meet its obligations and support national development goals.
Eskom’s first profit in eight years is a symbolic and financial victory for President Ramaphosa, whose energy reforms and steady leadership are beginning to yield tangible results. With Eskom now in a position to invest in vital infrastructure and reduce load shedding, the future looks brighter for South Africa’s energy landscape.
As Ramaphosa continues to push for long-term energy security, Eskom’s turnaround offers a clear example of what determined leadership and collaborative governance can achieve—even in the face of a complex, deeply entrenched crisis.
Source- EWN
