South Africa’s President Cyril Ramaphosa said the energy department will take responsibility for overseeing state-owned utility Eskom, which has failed to meet the country’s energy demand since 2008.
The change will be in line with a resolution adopted by the ruling African National Congress at its national conference last week, which specified that state-owned companies operating in specific economic sectors should be supervised by relevant government departments. That could potentially signal a dissolution of the Department of Public Companies, which oversees Eskom, the logistics company Transnet and several other entities.
“It’s a clear mandate from the conference,” Ramaphosa told reporters at a press event in Johannesburg on Monday.
“The resolution will be implemented,” and the government will decide how and when it will be done, he said.
Eskom, which supplies more than 90% of South Africa’s electricity, has been at the epicenter of a national energy crisis, as its old and poorly maintained plants cannot generate adequate power to meet demand. It subjected the country to a record 205 days of continuous blackouts last year, blocking economic growth and investment.
The government has already announced plans to split the nearly century-old company into three units and take over some of its debt to try to make it financially sustainable.
Public Enterprises Minister Pravin Gordhan has prioritized anti-corruption measures at Eskom and defended outgoing chief executive Andre De Ruyter. A change in supervision of the company may raise concerns among some investors, as Gwede Mantashe, the energy minister, has opposed plans to transition the economy to green energy, although Ramaphosa advocates doing so, and he has been openly critical of de Ruyter’s performance. .
Several previous resolutions taken years ago by the ANC are still in progress, and Ramaphosa warned that the party’s latest policy decisions will take time to implement.
