After years of rolling blackouts and public frustration, there’s finally a flicker of hope for South Africa’s power supply.
Eskom, the country’s embattled power utility, just received a slight bump in its credit rating—enough to suggest things might be turning a corner, even if there’s still a long road ahead.
Fitch Ratings has not only affirmed Eskom’s long-term credit rating but also improved its Standalone Credit Profile (SCP), nudging it up from ‘ccc-’ to ‘ccc+’.
While this is still well within the high-risk zone, it signals modest progress that could eventually ease the power crisis South Africans have lived with for far too long.
What a CCC+ Rating Actually Means for Eskom
Let’s not get too carried away just yet. A CCC+ rating is no reason to pop the champagne—it still reflects serious financial risk.
But it does indicate that Eskom’s financial health isn’t quite as dire as it was.
Think of it like moving from the ICU to the recovery ward.
It’s a step forward, but the patient is still fragile.
This small upgrade suggests Eskom is managing its operations more effectively, which may lead to higher earnings in the near future.
From 2025 to 2029, the company is expecting a noticeable increase in its EBITDA (earnings before interest, taxes, depreciation, and amortisation).
This is a key sign that Eskom’s power stations are slowly but surely becoming more reliable.
Financial Stability Signals Progress Toward Ending Load Shedding
Fitch’s latest review didn’t stop at just the SCP. The agency also confirmed Eskom’s long-term local currency Issuer Default Rating (IDR) at ‘B’ with a stable outlook.
Its senior unsecured debt rating was also held at ‘B’ (Recovery Rating ‘RR4’), while its senior unsecured guaranteed debt rating came in at ‘BB-’.
In short, these ratings reflect more confidence in Eskom’s stability and its ongoing support from the South African government.
That backing is crucial, especially as the utility works to reduce its dependence on bailouts and taxpayer funding.
Dan Marokane, Eskom’s Group Chief Executive, responded positively to the Fitch update.
He said the improved ratings reflect the utility’s commitment to turning things around—both financially and operationally.
According to him, the ultimate goal is to stand on its own two feet, without needing ongoing government support.
Still a Long Road Ahead for Public Trust and Reliable Power
While this credit rating boost is encouraging, it doesn’t mean South Africa is out of the woods.
The daily reality for many citizens—frequent load shedding and unreliable power—hasn’t changed overnight.
The rating upgrade may increase investor confidence, but everyday South Africans will be looking for real, tangible changes.
Fewer blackouts, more consistent power delivery, and a noticeable improvement in service will be the true signs of recovery.
And while Fitch sees a brighter future, Eskom still faces significant structural and operational challenges.
For the public, the big question remains: is this the beginning of the end for load shedding, or just another fleeting moment of hope?