The privatisation of Eskom is increasingly probable under the present government, but the utility is mired in vested interests that favour the status quo, say critics.
But is privatising the continent’s biggest state utility really in the best interests of the voter? Cadiz Corporate Solutions mining and resources division head Peter Major says while privatisation is not the answer for every state entity, it may be time for the ANC to ease the burden and allow for private equity, as several former state-owned entities (SOE) have done. “There was a time when the state could handle it, but now privatisation could bring much-needed relief.
” Necessitated by increasing demand for cheap, reliable electricity for the booming gold mining sector during the 1920s, the establishment of Eskom was under starkly different socioeconomic conditions and instrumental in the economic boom which pre-dated the sanctions of the apartheid era.