What does Zuma’s game of musical chairs mean for the energy industry?
The energy sector will be defined by the government’s willingness to assure investors that it will adhere to programmes
South Africans are in a state of shock following President Zuma’s seemingly abrupt decision to reshuffle the Cabinet. Paired with the subsequent credit downgrades, the country’s future is, yet again, riddled with uncertainty. The new minister of energy, Mmamoloko Kubayi, has held positions within the telecommunications and postal services industries, and is a member of the National Assembly. It is unclear whether these positions have given her enough experience to be apt in energy matters but to some extent this is not what will concern the energy sector of SA. What is a major worry is the fate of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The concern is predominantly spurred on from recent announcements to halt the programme, due to the high cost Eskom will be contractually required to pay, and the decision taken by the power utility provider that it could no longer support the power purchase agreements (PPAs). The president then announced duri...
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.