File picture: Nic Bothma/EPA

Johannesburg – State-owned power utility Eskom said on Thursday it has signed a new five-year electricity sales agreement with its neighbour, Namibia.

Eskom, the sole power provider in Africa's most industrialised country, has struggled to meet power demand in South Africa in the past due to its ageing infrastructure.

"Eskom has turned around and we are now open for business with surplus capacity available to empower economic growth," Eskom said in a statement.

"This agreement provides energy security to Namibia and allows for economic development and growth in the country without electricity availability concerns."

Namibia, where power supply is under strain, normally imports electricity from neighbouring countries.