National treasury wants to forge ahead with long-stalled plans to sell state assets to shore up the nation’s shaky finances despite opposition from other government departments and labour unions.
South Africa has unveiled its long-awaited plan to save its debt-stricken state power utility, including exposing it to greater competition, lowering fuel costs, increasing renewable energy output and selling non-core assets.
While the immediate causes of the generation crisis at Eskom are well known, the emergency it found itself in this week has been some time coming.
South Africa has been promising for months to fix Eskom. While little tangible progress has been evident so far, several key decisions are due to be taken this month.
Eskom, labouring under R450-billion of debt, has sought advisers on how to implement a government bailout seven months after President Cyril Ramaphosa said the company would be reorganised.
Government is intent on ensuring the embattled Eskom becomes a sustainable entity and will consult with its debt holders on any reorganisation, public enterprises minister Pravin Gordhan said.
Embattled state power utility Eskom will be temporarily led by Jabu Mabuza, its chairman, who will take over the roles of interim executive chairman and acting CEO starting from next month.
Denel has received a loan to pay its staff their full salaries this month, according to public enterprises minister Pravin Gordhan, giving the company a short-term reprieve from a cash crisis.
While state-owned enterprises such as Eskom, SAA and the SABC continue to make headlines for all the wrong reasons, one (partially) state-owned company is doing quite well, thank you very much. By Duncan McLeod.
