New Gauteng premier, Panyaza Lesufi wants Soweto’s debt to Eskom scrapped.

By Zuko Komisa

Panyaza Lesufi, the premier of Gauteng, wants to cancel Soweto’s approximately R5 billion debt to Eskom.

Lesufi contends that in order for “townships,” informal settlements, and hostels to grow, debt forgiveness is necessary.

On Friday, Lesufi took to Twitter to make his proposal.

“Minister [Enoch] Godongwana, we truly appreciate how you respect negotiations. Can we safely assume that the Soweto Eskom electricity debt and that of other townships is also scrapped as per our intensive lobby?” he wrote.

In 2020 alone, Eskom waived off approximately R8 billion in past-due debt, erasing billions in unpaid electricity bills in Soweto.

Soweto is still owing Eskom R4.7 billion as of September 30, 2022, the company said on Friday.

One of the biggest obstacles to Eskom’s own balance sheet has been municipal debt. At the end of August 2022, Eskom owed more than R51 billion.

Lesufi further wrote, “Our argument remains, if Eskom debt is taken over by the central government, what our people owe Eskom in townships, informal settlements and hostels must also be scrapped. We need to reposition our townships, informal settlements and hostels so that they can be centres of growth.”

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