President Cyril Ramaphosa says Eskom’s return to profitability for the first time in eight years demonstrates the value of collaboration and long-term commitment to reform.

Writing in his weekly newsletter, Ramaphosa said Eskom’s latest financial results are proof that the national power utility is “turning the corner,” thanks to coordinated efforts across government, business, and Eskom’s own leadership.

“The relative improvement in Eskom’s financial position reflects the significant recovery in Eskom’s operational performance,” he said.

“Thanks to collaboration between different government departments, the stewardship of the National Electricity Crisis Committee, and the hard work of Eskom staff, we are seeing tangible progress.”

Eskom last week announced a profit before tax of R23.9 billion for the year ended 31 March 2025, its first return to profitability since 2017. This compares to a loss of R25.5 billion the previous year. The turnaround, Eskom said, was driven by stronger plant performance, lower diesel use, and tighter financial discipline.

According to the utility, its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin improved to 29.05%, supported by a 12.74% standard tariff increase and a 14% reduction in primary energy costs.

Loadshedding declined sharply, with energy not supplied dropping to below 0.4 terawatt hours, compared with 13.2 TWh the year before. South Africans faced just 13 days of loadshedding, down from 329 in 2024, meaning Eskom supplied electricity on 96% of the days in the reporting period.

Eskom Chairperson Mteto Nyati said the results show that the utility is no longer in crisis.

“Eskom is increasingly a sustainable, investable company ready to compete in a liberalised, competitive energy market,” he said. “The comprehensive diagnostic review in 2022 reaffirmed Eskom’s strategic direction and the need to intensify delivery against our objectives.”

Chief Executive Dan Marokane credited the turnaround to the dedication of Eskom’s 42,000 employees and the company’s focus on execution.

“Following years of constrained performance, we are beginning to see tangible benefits of our recovery strategies. We are reinvesting profits back into national assets, with over R320 billion earmarked for sustaining and expanding infrastructure over the next five years.”

Marokane added that improved power supply reliability has had a direct impact on the economy.

“According to the CSIR, the South African economy lost up to R2.8 trillion due to loadshedding in 2023. In 2024, that figure was reduced by 83% to R481 billion,” he said.

Ramaphosa said the improved financial position will allow Eskom to continue investing in critical infrastructure under its Generation Recovery Plan. He praised the progress but cautioned that municipal debt arrears, now standing at R94.6 billion, remain a serious threat to Eskom’s financial stability.

“We continue to work with municipalities to find sustainable solutions that will enable them to settle their accounts with Eskom,” the president said.

Eskom confirmed that most participating municipalities have failed to meet the conditions of the National Treasury’s debt relief programme and that alternative interventions, such as prepaid supply models and distribution agency agreements, are being explored.

The president reaffirmed the government’s commitment to broader energy sector reforms, including the Electricity Regulation Amendment Act, which came into effect in January. The Act will enable Eskom’s restructuring into separate generation, transmission, and distribution entities and open the way for more private investment in energy generation.

Eskom, in partnership with the private sector, plans to construct about 14,000 kilometres of new transmission lines over the next decade to support grid expansion and connect new generation capacity.

Ramaphosa credited the progress to partnerships under the National Energy Crisis Committee (NECOM) and the Government-Business Partnership, saying these collaborative models are also driving improvements in other areas such as transport, crime prevention, and youth employment.

“The financial improvement at Eskom bears witness to the strength of these multi-sectoral partnerships, but also to the value of consistency and forging ahead with long-term goals, even in the face of strident criticism,” he said.

Ramaphosa concluded that the same collaborative and disciplined approach will guide South Africa’s broader economic recovery.

“We will continue along this recovery path across the economy to achieve our goal of inclusive growth that creates more jobs for our people.”

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