Plans to revamp power utility Eskom into three divisions is not aimed at privatising the embattled company but rather to improve its operations, South African President Cyril Ramaphosa said on Tuesday.
The president said these measures were aimed at stabilising the utility and getting it back on its feet following current operational malaise as witnessed by load-shedding schedules.
“We are not going to privatise Eskom. The power supplier is going to continue being owned by our government,” Ramaphosa said when he addressed Eskom workers and contractors at the inauguration of the Medupi Power Station in Lephalale town in the northern Limpopo Province.
According to the South African leader, to reverse Eskom’s current predicament there should be drastic interventions ranging from addressing the entity’s US$30 billion debt to introducing new operational tactics in place.
During his State of the Nations Address earlier this year, Ramaphosa announced that Eskom would be split into three entities focusing on operations, distribution, and transmission. This left Eskom workers to express concern over the security of their jobs.
But on Tuesday the president assured the workers that there were no sinister motives behind the move, apart from ensuring that Eskom returned to being a sustainable entity to enable it play its most crucial role in the country’s economy.
“This (revamping) has been done all over the world. China has done it. Brazil has done it. A number of countries in Africa have done it. Some countries in Europe have done it.
“They have all done the focus areas of the business so that they can maximise and get people (clients) to pay so that they operate efficiently. And that is precisely what we are seeking to do,” the president said.
NM/jn/APA