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During his state of the nation address (SONA), the South African President, Cyril Ramaphosa finally addressed the elephant in the room – that is the unbundling of Eskom.
In his speech, Ramaphosa confirmed that government will start a process of splitting the power utility into three units namely: generation, transmission and distribution.
These three separate entities will still fall under Eskom Holdings, he said.
The Organisation Undoing Tax Abuse (OUTA) has welcomed the announcement “but calls on the finance-lending houses to play their part in restructuring the loans and finding solutions to Eskom's predicament.”
OUTA stated that Ramaphosa’s SONA is a more credible, believable and nation-building speech than what the nation has been used to hearing over the last decade, “but that was to be expected”.
“While this gives us hope for much-needed solutions, the test will be in the implementation of these rather ambitious plans,” OUTA stated. Read more: ESI Insights #16: Is Eskom’s privatisation possible?
“South Africa is tired of lip service when it comes to combating corruption and building the economy,” said OUTA CEO Wayne Duvenage.