JOHANNESBURG, Jan 15 (Reuters) – South Africa’s state-run
Industrial Development Corporation (IDC) said it would not
consider selling its holdings in listed companies in order to
take pressure off the country’s cash-strapped power utility, its
chief executive told local media.

South Africa’s government has said it would dispose of
“non-strategic” assets to raise much-needed money to help
finance the ailing power utility Eskom and help end
frequent electricity outages.

Speaking to the Business Day newspaper, Geoffrey Qhena said
the complete disposal of IDC stakes, which amount to about 46
billion rand ($4 billion), is “out of the picture” as the
company was self-funding and would require the holdings to
remain financially independent.

A Barclay’s note this week said the sale of the private
assets held by the IDC was the fastest and most likely way to
provide funds to state-owned Eskom.

South Africa is currently facing its worst power crisis
since 2008, as Eskom struggles to keep the lights on in Africa’s
most advanced economy due to ageing and poorly maintained power
stations.

The utility last Friday implemented rolling blackouts in
some parts of the country, the first such power cuts this year,
and has warned that more are certain as the company has no funds
to purchase fuel for its gas turbine stations.

Even with a 20 billion rand cash injection from the
government and permission to raise electricity tariffs, Eskom
has said it needs more funds to ensure liquidity.

IDC has stakes in companies such as Kumba Iron Ore (Other OTC: KIROY – news) ,
Sasol (Other OTC: SASOF – news) , BHP Billiton (NYSE: BBL – news) , Hulamin and
Sappi.

($1 = 11.4530 rand)

(Reporting by Zandi Shabalala; Editing by Kenneth Maxwell)