Last week on Twitter, chief economist of Rand Merchant Bank (RMB), Isaah Mhlanga, suggested that Eskom, South Africa’s troubled state-owned electricity supply company, be privatised.
With his tweet, Mhlanga motivated me to write this column. He validated another column I wrote eight years ago, where I argued that Eskom needs the hand of the private sector, and South Africa’s energy market liberalised to allow for a more diversified supply of electricity from the private sector. Because the goal must be one, and that is the increased supply of electricity. To suggest that eight years ago was sensible, is still a sensible suggestion today.
You will think that it is economist Isaah and I only who believe Eskom needs the involvement of the private sector. Not at all. There are other people out there, including the new minister of electricity Dr Kgosientsho Ramokgopa who has said that some privatisation is needed at Eskom…..
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