Electricity, expropriation and South Africa’s gold mines
As the push for the privatisation of Eskom gains steam — supported, in large part, by big business — it’s worth revisiting the story of how the country’s power sector was nationalised in the first place. That move, in an interesting counterpoint, was driven by mining interests
In 1948 the South African government, with the help of the Anglo American Corp, expropriated — with compensation — Victoria Falls & Transvaal Power Co (VFTPC), the largest electricity producer in the country. Coming in at a mind-boggling £14.5m (about R698m today), the deal was the biggest financial transaction in South African history at the time.
In this day and age, the words expropriation and nationalisation might set people’s teeth chattering. As DA leader John Steenhuisen regularly claims, one of the greatest fears in South Africa is that a possible ANC-EFF coalition may in future nationalise and expropriate privately owned entities. ..
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