Johannesburg Faces Blackout Risk as Eskom Says Africa’s Richest City Owes $400 Million in Power Debt

In a sharply worded notice issued Tuesday, Eskom said the City of Johannesburg and its municipal distributor, City Power, owe a combined R6.8 billion ($408 million), including arrears of R5.25 billion and another R1.58 billion due by June 5.

The utility said repeated attempts over the past two years to help the city stabilise repayments had failed.

“As a result of continued failure to honour its Electricity Supply Agreement with Eskom, including repeated defaults, Eskom has been forced to issue a notice of its intention to reduce, interrupt and/or terminate the supply of electricity to certain bulk supply points,” the company said.

The warning lands at a delicate moment for Johannesburg, South Africa’s financial and commercial hub, which contributes roughly 16% of the country’s GDP and hosts the headquarters of major African banks, mining houses and multinational companies.

Any serious disruption to electricity supply in the metro would likely ripple through sectors already strained by weak economic growth, logistics bottlenecks and years of energy instability.

The latest standoff also comes as scrutiny intensifies over Johannesburg’s worsening finances.

South Africa’s National Treasury recently raised concerns about the city’s fiscal position, while local media reported details of a leaked letter from Finance Minister Enoch Godongwana to Mayor Dada Morero warning about governance, debt and service delivery pressures.

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