South Africa’s long troubled state-owned power utility moved a step closer to breakup. On Thursday President Cyril Ramaphosa said the government would move forward with dismantling Eskom in order to create a “fully independent” firm that “will have ownership and control of transmission assets” and be responsible for running the energy market.
The move comes after mounting criticism from international investors following years of power outages and disruptions for businesses in Africa’s biggest economy. “Splitting the company is meant to attract private capital and build a more modern, reliable electricity system,” noted Reuters. However the new break-up plan diverges from an earlier promise where Ramaphosa said Eskom would be split into three standalone units, sparking uncertainty among some investors, noted South African newspaper Business Day.
