Unions Fear Jobs Losses Under Plan To Split South African Electricity Provider

Trade unions in South Africa have vowed to oppose the government’s recent decision to split Africa’s largest electricity producer into three separate entities, as part of its plans to turnaround the debt-laden power utility, the Irish Times reported. In his state-of-the-nation address last Thursday South Africa’s president Cyril Ramaphosa announced that the state-run business would be broken up into three distinct companies that will focus on power generation, transmission and distribution. The new entities will still be controlled by Eskom Holdings. Mr Ramaphosa told parliament in Cape Town that Eskom currently has the potential to “severely damage” the country’s economic and social development ambitions if drastic action were not taken to turn around its fortunes. “We need to take bold decisions and decisive action,” he said. “The consequences may be painful, but they will be even more devastating if we delay.” South Africa’s government has acknowledged that Eskom has racked up debts of around 419 billion rand (€27.2 billion) in recent years due to corruption, mismanagement and its outdated business model. Read more