What is the South African government's plan regarding Eskom's transmission subsidiary, and who has endorsed it?

The South African government plans to spin off Eskom Holdings SOC Ltd.’s transmission subsidiary into an independent transmission system operator (TSO) outside Eskom, as part of efforts to open the electricity market to greater private-sector participation; this plan has been endorsed by President Cyril Ramaphosa.

What are the main financial and credit concerns raised by Eskom's proposed spinoff, according to the National Treasury and Eskom itself?

The main concerns are Eskom’s long-term financial viability after losing its most profitable division and the implications for government guarantees backing Eskom’s debt; Eskom warned the separation would constitute a 'material event' that fundamentally alters its credit risk profile, while Treasury Director General Duncan Pieterse emphasized the transaction must ensure Eskom is 'left no worse off' and remains sustainable, and that the new TSO itself must also be sustainable.