South Africa's state-owned power utility operating a coal-fired fleet with performance challenges; rated 'B' by Fitch with weaker financial metrics than NamPower.
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June 2026
Windhoek Observer
Eskomcontinues to dependheavily on support from the South African government to maintain operations
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“The ratings agency said Eskom continues to depend heavily on support from the South African government to maintain its operations, while NamPower is viewed as having a stronger financial position and lower reliance on direct state intervention.”
Eskomhasleverage and liquidity notably weaker than NamPower
Source
“The agency noted that Eskom's leverage and liquidity are "notably weaker" than those of NamPower, which holds a 'BB-/Stable' rating and a standalone credit profile of 'bb-'.”
Eskomhas import contract withNamPower for energy procurement
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“The cost to procure energy forms the largest portion of the revenue requirement, including import contracts with Zesco, ZPC, and Eskom, as well as energy imported from the Southern African Power Pool (SAPP), among others.”
“While Eskom has dramatically improved, it is now starting a process of publicly consulting people and stakeholders in municipalities about disconnecting those councils.”
Eskomis starting a process of publicly consulting aboutdisconnecting councils that have failed to pay
Source
“While Eskom has dramatically improved, it is now starting a process of publicly consulting people and stakeholders in municipalities about disconnecting those councils.”
“More broadly, Operation Vulindlela, a government task force set up in 2020 in part to reform and privatise parts of South Africa's flailing public infrastructure, helped the state-run power company Eskom drag itself out of the crisis.”
Eskomincreasedelectricity tariffs by 12.72-12.74% in July, with average urban tariff increase of 13.29%
Source
“In July this year, Eskom's electricity tariffs increased by between 12.72% and 12.74% which saw the average increase to urban tariffs at 13.29% due to the increase in the affordability subsidy charge.”
NamPower is implementing major electricity transmission projects to strengthen Namibia's power grid and support economic growth, including the N$2 billion 400kV Auas-Kokerboom Transmission Line expected to be commissioned in the second half of 2028.
Why it matters
NamPower's multi-billion transmission expansion projects are critical infrastructure investments to strengthen the power grid and support long-term economic growth.
NamPower is implementing major electricity transmission projects to strengthen Namibia's power grid and support economic growth, including the N$2 billion 400kV Auas-Kokerboom Transmission Line expected to be commissioned in the second half of 2028.
Fitch Ratings says Namibia Power Corporation has stronger liquidity and leverage metrics than South Africa's Eskom, which relies heavily on government support. NamPower holds a 'BB-/Stable' rating with a 'bb-' standalone credit profile, while Eskom is rated 'B' with a 'ccc+' standalone profile.
South Africa's accession to the African Export-Import Bank as its 54th member brings a $11 billion commitment to transform Africa's trade architecture through mineral processing, manufacturing, and critical infrastructure investment. The move positions the continent to retain value in raw materials and access global trade frameworks rather than exporting unprocessed minerals.
Record fuel price hikes in South Africa, partly driven by Middle East geopolitical tensions, are spurring employers to reconsider rigid return-to-office policies in favour of hybrid and remote work arrangements. Experts warn the crisis compounds financial stress for households and threatens to worsen load-shedding unless authorities intervene substantially.
The Namibia Power Corporation has submitted a bulk tariff application of 8.4%, raising the average tariff from 206.11 c/kWh to 223.40 c/kWh. The Electricity Control Board noted that while cost-reflectivity would require a 30.4% increase, NamPower has opted for a measured approach to balance tariff cost-reflectivity with affordability.
According to The Namibian opinion analysis, South Africa's ANC faces upcoming local elections with little apparent focus on governance messaging or strategic preparation, while the party confronts internal disputes, municipal service delivery failures, and dwindling support from coalition partners that could further erode its electoral standing.
While the International Monetary Fund forecasts Africa's 2026 economic growth will outpace Asia's for the first time in modern history, economists warn that this recovery has yet to translate into improved living conditions for ordinary people in major economies like South Africa and Nigeria. In both countries, high costs for food, energy, and transport persist despite macroeconomic gains, and households remain poorer than a decade ago.
Eskom's coal-fired power stations achieved a 58% energy availability factor in 2025, up from 55% in 2023 but still well below the 80% target. Half of the coal fleet spent more than 30% of the year offline for unplanned repairs, pushing up electricity costs and leaving South Africa exposed to future load shedding even as overall performance improves.
A Namibian assessment of President Cyril Ramaphosa's 2025 State of the Nation pledges finds significant progress on energy reform and infrastructure investment, but widespread failure in local government service delivery, water provision, jobs creation, and health insurance rollout. The analysis concludes the president is "fixing the system but failing the street," where citizens experience repeated failure in municipal services, water crises, and public health.