Eskom, struggling with more than R440-billion in debt, has said it will take as long as three to five years to comply with the government’s plan to split the company into three separate units.
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An acceleration in economic growth in South Africa could trigger power cuts, with state utility Eskom’s fragile generation system unable to respond to increased demand for electricity.
Labour unions that oppose the government’s plans to split Eskom into three units will ultimately have to support the reforms, according to mineral resources & energy minister Gwede Mantashe.
The threat of an International Monetary Fund bailout, unthinkable a few years ago, may force South Africa’s government to push through the reforms it needs to rescue the economy.
The area around coal-fired plants owned by Eskom ranks as the world’s second largest hotspot of sulphur dioxide emissions, according to Greenpeace.
President Cyril Ramaphosa is hamstrung by politics and the economy is suffering the consequences.
The chief executive role at Eskom, considered the most challenging job in corporate South Africa, is attracting interest from people who know how difficult turning around the debt-ridden state utility will be.
Nissan, BMW and Volkswagen are among car makers in talks to bring the electric car revolution to South Africa, as the nation’s auto-factory floors risk being left behind in the global switch to greener vehicles.
Moody’s Investors Service hasn’t said it, but investors already think it: South Africa’s credit is junk.
Eskom wants the majority of its R440-billion of debt transferred to the South African government.