South African President Cyril Ramaphosa said the energy department will take over responsibility for overseeing state utility Eskom Holdings SOC Ltd., which has been failing to meet the nation\u2019s power demand since 2008.<\/p>\n
The change will be in line with a resolution adopted by the governing African National Congress at its national conference last week, which specified that state companies operating in specific economic sectors should be overseen by the relevant government departments.<\/p>\n
That could potentially signal a dissolution of the Department of Public Enterprises, which oversees Eskom, logistics company Transnet SOC Ltd. and several other entities.<\/p>\n
\u201cIt is a clear mandate from the conference,\u201d Ramaphosa told reporters at a media event in Johannesburg on Monday. \u201cThe resolution will be implemented,\u201d and the government will decide how and when it will be done, he said.<\/p>\n
Eskom, which supplies more than 90% of South Africa\u2019s electricity, has been at the epicenter of a national energy crisis, because its old and poorly maintained plants can\u2019t generate adequate power to meet demand. It subjected the country to a record 205 days of rolling blackouts last year, which stymied economic growth and investment.<\/p>\n
The government has already announced plans to split the nearly century-old company into three units and take over part of its debt to try and make it financially sustainable.<\/p>\n
Public Enterprises Minister Pravin Gordhan has prioritized anti-corruption measures at Eskom and defended outgoing Chief Executive Officer Andre De Ruyter.<\/p>\n
A change in the oversight of the company may raise concerns among some investors as Gwede Mantashe, the energy minister, has been opposed plans to transition the economy to green energy \u2014 even though Ramaphosa advocates doing so \u2014 and been a vocal critic of De Ruyter\u2019s performance.<\/p>\n
Several previous resolutions taken years ago by the ANC are still work in progress, and Ramaphosa warned that the party\u2019s latest policy decisions will take time to implement.<\/p>\n
\u201cThings in government move very slowly, I have learned,\u201d he said.<\/p>\n