South Africa: Why South Africa's Latest Plan for State-Owned Power Giant Could Work

analysis

South African President Cyril Ramaphosa has unveiled a new plan for the country's beleaguered state owned power utility, Eskom. During his State of the Nation Address on 7 February, Ramaphosa announced that Eskom would be unbundled into "three separate entities - generation, transmission and distribution". These would all be established "under Eskom Holdings".

This announcement has been a long time coming. It was first proposed and formalised 20 years ago in the country's 1998 White Paper on Energy Policy. Among other things, the policy sought to break Eskom into distinct smaller entities.

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