South Africa’s power utility Eskom said on Friday it aims to borrow a further R55 billion rand and turn its government debt into equity as it looks to boost generating capacity amid chronic power cuts.

Africa’s most developed economy is enduring its worst electricity blackouts since 2008, as cash-strapped Eskom cuts power daily to households and companies in a bid to cope with demand and prevent the national grid from collapsing.

The conversion of the state’s subordinated loan to equity is part of a government financial package for Eskom, and includes a 23 billion rand injection that will help the utility plug an estimated funding gap to 2018 of 200 billion rand.

“We are quite confident that we will be able to raise the R55 billion during this financial year,” acting chief executive Brian Molefe told parliament.

It was not clear how Eskom would raise the funds.

Eskom and government also said a 60 billion rand loan from the state would be converted into equity to improve the utility’s liquidity and expand its borrowing capacity.

Standard & Poor’s in March cut its credit ratings for the cash-strapped Eskom to junk following the suspension of the utility’s former CEO and three other senior executives while an investigation on the firm’s operations was being conducted.

Molefe also said South Africa has enough electricity supplies and was not suffering from systemic constraints.

“It is not because we do not have enough electricity as a country, we do, but not all of it is available at all times and that is a temporary problem and not a systemic problem,” he said.

He said the installed electricity capacity stood at around 43,500 megawatts, and South Africa had enough power but ageing infrastructure and a huge maintenance backlog hindered output.

–Reuters