BLSA CEO’s Weekly Newsletter – Eskom’s return to profit strengthens South Africa’s economic foundation

Eskom has returned to profitability for the first time in eight years, posting a profit before tax of R23.9 billion for the 2025 financial year. The significant reduction in load shedding in 2025, has improved electricity supply reliability and boosted Eskom’s revenue. Eskom’s turnaround has been supported by over 350 private sector experts mobilised by the National Electricity Crisis Committee, contributing more than 12,000 hours of expertise. Despite these gains, challenges remain, including a municipal debt increase of 27% to R94.6 billion, delayed clean audit opinions due to compliance issues and targets for the energy availability factor yet to be met. Eskom’s return to profitability after eight years offers some welcome positive news for the power utility and the broader economy. I want to congratulate Eskom for its financial results released last month, which showed it made a profit before tax of R23.9bn. It is the first time the utility has posted a profit in eight years. I was impressed that this was achieved not just from higher tariffs, but from a fundamental and significant improvement in the operations of the state-owned entity. Load shedding was damaging to Eskom for many reasons, but one obvious consequence was that it had […]

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