‘Dysfunctional’ Eskom may yet scupper Ramaphosa’s investment dreams
And life will only be a gas if the government gets its policy, governance and strategy right for Total’s R1-trillion offshore discovery
If there is a single factor threatening to scupper any of President Cyril Ramaphosa’s plans to attract $100bn of investment over five years it will be Eskom. Based on his comments delivered to a receptive audience at last week’s Investing in Africa Mining Indaba, his government is being steered towards attracting foreign capital inflows, and the message is clear: we want you here, invest. But the damage Eskom is doing, not only to businesses already in SA but the country’s image as an investment destination, can’t be calculated. With Eskom unexpectedly stopping 4,000MW of power without warning, prompting Ramaphosa to describe the utility as “dysfunctional” and that it made him “angry”, shows he is well aware of the damage it is doing to his plans to grow the economy and create jobs. But the blame can be laid squarely and unreservedly at the ANC’s door. As the party ruling the country it has made shockingly short-sighted decisions about the single most important state-owned asset. It...