IN SHORT: Eskom plans capital expenditure of R343 billion across its value chain over the next five years, its CFO Calib Cassim told parliament on May 3. The spending ramps from R55 billion in 2026/27 to R78 billion in 2029/30, covering generation, transmission, distribution, smart meters, renewable energy and gas. Eskom projects profit before tax of R30 billion in 2027 rising to R51 billion in 2031. South Africa has now gone more than 320 consecutive days without load shedding.
Eskom is moving from survival to investment at a scale that would have seemed impossible three years ago, committing R343 billion in capital expenditure over five years to modernise South Africa’s electricity infrastructure while targeting an energy availability factor of 70% by 2027/28.
CFO Calib Cassim briefed the Parliamentary Portfolio Committee on Electricity and Energy on May 3, presenting the most detailed five-year roadmap Eskom has produced since its turnaround began.
- The R343 billion breaks down: National Transmission Company of South Africa gets approximately R157 billion to build grid infrastructure for renewable integration. Generation absorbs R126 billion. Distribution receives R38 billion for network reliability and smart meters.
- Phased spending: R55 billion in 2026/27, R66 billion in 2027/28, R72 billion in 2028/29, R78 billion in 2029/30, R73 billion in 2030/31.
- Of the total, R167 billion targets financial and operational stability, R138 billion for ecosystem modernisation, R24 billion for the just energy transition away from coal, and R14 billion for sector leadership positioning.
- Eskom projects no new capital markets fundraising in 2027. Profit before tax targets: R30 billion in 2027 rising to R51 billion in 2031. Cost savings of R112 billion expected over five years.
- Renewable pipeline: 2,000MW construction-ready by 2027, scaling to 5,500MW by 2031. Gas: 1,500MW by 2029, 3,000MW by 2031. Transmission: 8,362 km of new power lines and 82,415 MVA of transformer capacity by 2031.
- Smart metering: 5.4 million smart meters by 2028, targeting illegal connections and non-payment that currently force load reduction in distribution networks.
- S&P upgraded Eskom’s credit rating in November 2025, the first upgrade in a decade. Still three notches below investment grade on a standalone basis, but each upgrade reduces borrowing costs for the capital programme.
- More than 320 consecutive days without load shedding. Energy availability factor at 66.6% in March 2026, targeting 70% by 2027/28. Coal units must meet minimum emission standards to sustain operations beyond 2030.
Cassim said the strategic focus has shifted "from recovery to competitiveness and customer centricity, market reforms, improved distribution reliability, elimination of load reduction and a responsive, customer-focused Eskom."
The Bigger Picture: R343 billion in capital expenditure from a utility that was functionally insolvent three years ago is a transformation. The numbers are credible because the underlying operational turnaround that enables them is real. Load shedding has effectively ended, cash flows are strengthening, and the transmission infrastructure investment South Africa’s energy transition requires is now funded. Eskom’s capex programme is not just about keeping the lights on. It is a prerequisite for South Africa’s economic growth over the next decade.
*Source: <a href="https://www.businessday.co.za/news/2026-05-04-eskom-plans-r343bn-in-capex-over-next-five-years/”>BusinessDay, May 3-4, 2026
