South Africa’s labour minister to block any plans to privatise Eskom

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South Africa’s labour minister said he’ll oppose any move to privatise the beleaguered power utility Eskom, as it struggles to generate power, avoid outages and repay R396 billion of debt.

Privatising the company would be detrimental to the poor, employment and labour minister Thulas Nxesi said in an interview. While President Cyril Ramaphosa’s government has previously denied any plans to sell the company, there have been calls to divest from the asset. S&P Global Ratings said privatization may be the best option to resolve the power crisis in Africa’s most-industrialized nation.

Eskom poses a significant risk to South Africa’s economy and its public finances, with the government guaranteeing as much as R350 billion rand of its debt. The utility has been intermittently cutting 6,000 megawatts from the grid since last month, leaving the country in darkness for hours at a time and further constraining industrial output and growth.

The administration is in the process of breaking up Eskom into three separate entities – power-transmission, generation and distribution.

 

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What point is there for the CompComSA in the private sector? If competition ensures fairness in the private sector, they should do it in the public sector too - as what is happening in ESKOM is neither fair nor economically viable - to detriment of the entire country and economy

luya_madiba Make that fire pool in Nkandla a public one.

If you vote for communists, you get communist results like loadshedding.

luya_madiba Reshuffle him… He didn’t get the memo.

Businesses and homeowners will invest in their own capacity.....Eskom is going to lose hundreds of thousands of high value customers in the short to medium term

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