The government has sold its 13.91% stake in Vodacom to the Public Investment Corporation to help fund the R 23 billion allocation to Eskom, National Treasury said in a statement today (1 July).
The move comes after energy regulator Nersa on Monday rejected Eskom’s request for a further 9.58% increase in electricity tariffs.
“The sale of the Vodacom stake was the most viable option for ensuring that government was able to swiftly realise the proceeds and inject equity into Eskom to bolster the utility while simultaneously ensuring government was still able to deliver on its strategic objectives.
“As previously indicated, the proceeds from the sale will be used to finance the R23bn allocation to Eskom.
This gives expression to the commitment made in the 2015 Budget and the 2014 Medium Term Budget Policy Statement that funding of state owned companies would be in a deficit neutral manner,” Treasury said.