The struggling South African government has announced that it will assume nearly two-thirds of the $23 billion (£19 billion) total debt of the state power company.
This occurs at a time when malfunctions at Eskom’s power plants have caused unheard-of power outages that are harming the nation’s economy.
The national treasury’s decision should release funds for distribution, transmission, and maintenance.
This month, President Cyril Ramaphosa declared a state of disaster due to the energy crisis, enabling the government to take immediate action.
Eskom has been plagued by corruption and mismanagement. It has received more than $14 billion worth of bailouts since 2008.
The latest move by the government comes as the outgoing Eskom chief executive, who was due to exit the company next month, leaves with immediate effect.
The firm’s board resolved on Wednesday that Andre de Ruyter would not be required to serve the balance of his notice period.
In an interview with a local TV station on Monday, Mr De Ruyter questioned the government’s ability to deal with the corruption at the utility firm.