South Africa Eskom

South Africa Turns to Private Sector in Bid to End 14 Years of Blackouts

The President of South Africa Cyril Ramaphosa has announced a new move aimed at engaging the private sector in electricity production in the country, an attempt aimed at ending a 14-year –old power crisis that has for long hit the South African nation. This is after many failed attempts by the government in resolving the issue.

In making the resolve, the South African President indicated that companies will be allowed to construct power plants of unrestricted sizes without a license. This would help them meet their individual needs and sell it as well. Speaking in a televised address, President Ramaphosa noted that the power supply tender would also double in the coming days.

This move comes after the constant pressure on the South African President to eliminate the constant power cuts in the region. The pressure has been turned into ideological wrangles claiming that the African National Congress, which is in power, is hesitant to minimize government control on electricity provision. The promises to the citizens of resolving the matter no longer hold water and many are demanding action to be taken.

“After a decade of unstable power supplies, South Africans are justifiably frustrated, and they are also angry”, said President Cyril Ramaphosa

Further in the address he also said that those who own buildings and houses will also be in a position to trade power from the solar panels on their roofing. Subsequent reports read that, The South African President has doubled the size of the incoming electricity supply tender.

The decision was well received though many have warned that the policies must be cautiously implemented. There are no disputes as to his energy plan rather the questions raised are with regard to implementation.

“What is still required is a clear execution plan, set against hard deadlines and accountability for delivery. The country and the business sector will benefit from regular and transparent progress reports, so it can track and plan”, BUSA Chief Executive Officer Cas Coovadia said.

“The shortage of electricity is a huge constraint on our economic growth and job creation. It deters investment; it reduces our economy’s competitiveness. What the most recent load shedding has made clear is that the actions we have taken, and the actions that we continue to take, are not enough.” – Cyril Ramaphosa, President of South Africa.

South Africa’s Energy Outlook.

The energy plan is potentially effective and if it is implemented then the country will be a step closer to energy independence. The plan is set to allow Eskom to purchase power from private entities. This is after the monopoly has been swamped in debt with the most recent power cuts at Eskom cutting around 6,000 megawatts of supply.

The popular opinion is that if the South African President implements his energy plan as expected then things will cool off in terms of the uncontrollable power cuts.

Also Read: South African Reserve Bank Raises Repurchase rate by 75 BPS.