Eskom selling R5.7 billion business

Eskom has made progress on a deal with African Bank to sell its home loan business, which has a loan book of R5.7 billion.

In December, Eskom announced that it had accepted a binding offer from African Bank for the staff home loan book and assets housed in Eskom Finance Company SOC Limited and its interest in Nqaba Finance 1 RF Limited.

Through the business, Eskom offered home loans to its employees, with instalments then deducted from their salaries.

The National Treasury required the sale of its home loan business as part of the R250 billion debt-transfer bailout delivered in 2023.

African Bank and Eskom have now reached various agreements to regulate the transaction.

The bank and energy supplier will now proceed to apply for applicable regulatory approvals from required bodies, such as the Competition Commission.

Eskom said that it will continue to keep its stakeholders updated regarding the deal.

African Bank previously noted that integrating the R5.7 billion home loan book and leveraging Eskom’s established infrastructure and relationships would help diversify its offerings.

The traditional short-term lender will enter the secured home loan lending market as part of its IPO pathway, which has been delayed from 2025 to late 2027.

The bank has been on an acquisition drive ahead of the listing. It paid Sasfin over R3 billion for its Commercial Property Finance and Capital Equipment Finance businesses last year.

It previously purchased Grindrod Bank in 2022, marking its entrance into business banking.

The group, which was placed into curatorship in 2014, recently reported that its net profit after tax increased in the six months ended 31 March 2025 of R202 million.