Eskom, SA’s biggest state-owned enterprise, should be broken up into smaller entities, according to former deputy finance minister Mcebisi Jonas. This comes in the midst of wage negotiations and strikes at the embattled power utility. Unions rejected a 4.7% wage offer last week. Jonas is now a member of cellphone operator MTN’s board. Speaking to Business Day at the Drakensberg Inclusive Growth Forum recently, Jonas said: "It’s a huge state monopoly that’s highly inefficient and there is a case for unbundling." This would entail splitting the embattled SOE into constituent businesses, he said. "Stabilisation isn’t enough. The more difficult challenge is going to be actually effecting transformation by rethinking and remodelling SOEs," he said. This did not necessarily mean privatisation but rather a convergence between public investment and private investment into these entities. "The debate is not about who owns them, the debate is about how they are managed and how to ensure that ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.