Privatizing 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 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. “For us there are two major issues around Eskom, one is the resources, they need money to invest in new generation and to ramp up maintenance. You have to cut the debt by half to free up that kind of capital,” Matthew Parks, parliamentary coordinator at Cosatu, said in a separate interview.
Sell to foreign investors. SA had its chance? AN_fukn_C
The minister will oppose the sale of Eskom, b/c that means less money to misappropriate.
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