African National Congress (ANC) Treasurer-General, Paul Mashatile, says the unbundling of Eskom will not result in retrenchments at the power utility.

He was speaking at the ANC Gala dinner at Dan Lodge outside Mthatha in the Eastern Cape on Friday night.

President Cyril Ramaphosa announced during the State of the Nation Address (SONA) on Thursday that Eskom would be unbundled into three entities: generation, transmission and distribution under Eskom Holdings as part of addressing the state-owned enterprise’s challenges.

Mashatile says the unbundling of Eskom will instead address its financial woes.

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