Eskom, Renewable Energy Projects, Transnet drive massive surge in state guarantees
Minister of Finance Enoch Godongwana says guarantees to state-owned entities have surged since 2008
Image: GCIS
Minister of Finance Enoch Godongwana says guarantees to state-owned entities have surged since 2008, with Eskom, Transnet, the Renewable Energy IPP Programme, SANRAL, and TCTA now responsible for hundreds of billions of rand.
Godongwana made the disclosure in a written reply to Democratic Alliance MP Dr Mark John Burke, who asked what factors had caused the proportion of government debt guarantees, including Transnet’s, to rise from 2% of GDP in 2008 to nearly 10%.
Godongwana explained that in 2008, guarantees to state-owned entities totalled R64.5 billion, led by the Trans-Caledon Tunnel Authority (R19.3 billion). Since then, Eskom has received R350 billion in guarantees, of which R353.7 billion had been utilised by 30 June 2025.
"In 2008, guarantees to State Owned Entities amounted to R64.5 billion, with the Trans Caledon Tunnel Authority (TCTA) contributing the highest amount of R19.3 billion in guaranteed debt. Since then, Eskom received a total of R350 billion in guarantees, of which R353.7 billion had been utilised by 30 June 2025," Godongwana said.
He added that this figure includes accrued interest and revaluation of inflation-linked debt.
'This includes accrued interest and revaluation of inflation-linked debt. At that time, the Renewable Energy Independent Power Producer Program was launched in 2012, and by 30 June 2025, the guarantee exposure under the program had amounted to R257.2 billion.
"In June 2008, Transnet's guaranteed debt amounted to R14.7 billion, and by June 2025, the amount had increased to R48.4 billion. The biggest contributors would therefore be Eskom, Renewable Independent Power Producers, Transnet, TCTA, and Sanral".
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