South Africa will hire advisers in the coming weeks to begin negotiations with lenders on a plan to spin off state-owned power utility Eskom Holdings SOC Ltd.'s transmission subsidiary, according to the head of the National Treasury. The move marks a significant step in the country's long-running efforts to restructure Eskom, which has been plagued by financial difficulties and chronic power outages. The transmission subsidiary is considered a critical piece of the utility's operations, as it manages the grid infrastructure that distributes electricity across the nation.

Adviser selection is expected to be completed promptly, with negotiations set to commence shortly thereafter. The government aims to address mounting debt concerns while ensuring that the spin-off does not disrupt power supply to households and businesses. Lenders will play a central role in shaping the terms of any restructuring agreement.

The National Treasury has emphasized that the process will be conducted transparently and in line with fiscal responsibility goals. This development comes amid broader pressure on South Africa's economy to reform state-owned enterprises and reduce public debt.