Eskom issued a Stage 6 load shedding schedule over the weekend – Photo: Stock/Canva
Eskom issued a Stage 6 load shedding schedule over the weekend – Photo: Stock/Canva
A funding package set out by the UK and several other countries aims to guarantee more than R15 billion on South Africa’s debt – with the release of these funds designated to help Mzansi transition away from coal, and the tedium of Eskom’s load shedding schedules.
Why the UK could fund a ‘greener’ South Africa
The debt guarantee is being considered by the powers that be. The final figure could even rise to R120 billion, as nations with a heavy dependency on coal are being encouraged to make the switch to green energy instead.
Such a vast sum of money would be welcomed eagerly by South Africa’s Treasury, which is still trying to manage the enormous R390 billion ‘debt black hole’ that Eskom has totalled up over the years. However, it wouldn’t be enough to solve the utility’s problems.
How much is needed to help address load shedding crisis?
If all goes to plan, the green energy package will be managed by the African Development Bank. The group told Bloomberg on Tuesday that a ‘financial vehicle’ is being organised to ensure that everything changes hands smoothly.
“The bank is currently working on a financing vehicle to assist with the funding of the Just Energy Transition in South Africa but we are not yet in a position to discuss any of the details at this point.”
African Development Bank
Plan to ease load shedding impact ‘sees wheels turning’
Almost 100 000 jobs are in South Africa’s coal industry, but as the world moves into a more climate-sensitive frame of mind, the demand for all countries to do their bit is becoming more incessant.
SA is actually one of the biggest polluters in the word, and the green intentions behind the UK’s billion-dollar debt guarantee are enshrined in agreements hammered out during the COP Conference in 2021.
The money-men in Cabinet will be hoping that this deal gets the go ahead soon, as it essentially addresses two major problems at once.
Not only will it contribute to reducing the impact of global warning, but the threat of load shedding would be reduced greatly by the provision of alternative power sources.
