How Nedbank’s Mike Brown would save Eskom
The Nedbank CEO Mike Brown believes the beleaguered utility can be saved but questions whether its current model is appropriate
Ask Nedbank Group CEO Mike Brown how to save beleaguered Eskom and his approach is simple: first, give it cash and then consider a debt-to-equity swap later.
Eskom is paying so much in interest on its debt — at the same time that its income is falling — that the company is struggling to keep the country’s lights on. To ease the firm’s cash-flow woes, the government is planning a R230bn bailout. While the state initially wanted to spread that over 10 years, a significant portion is now being expedited, with details expected from National Treasury on July 23.