“Privatise Eskom! It’s the only solution to this mess” – Senior Economist

“Privatisation of Eskom is the solution to this mess,” says Renaissance Capital Senior Economist Thabi Leoka.

To say that electricity is very important is an understatement. “A lot of damage is being done to our economy because of our electricity supply constraints,” says Leoka.

Privatisation a logical solution

Eskom has a shortfall of about R250-billion, according to Leoka. Others, such as former Eskom employee and mining analyst Ted Blom, estimate the shortfall at no less than R500-billion. “The most logical solution is to privatise Eskom and list it on the stock exchange,” says Leoka.

Private companies are more efficient and can more easily avoid political interference, says Leoka.

Privatisation and the developmental state perfectly suited

“Privatisation is completely suited to a developmental state,” says Leoka. “Our main impediment to growth is a shortage of electricity. If this shortage lasts another seven to ten years, as is being predicted, a lot of our big and small industries will be negatively impacted."

Leoka says many other developing countries have successfully privatised their state-owned entities.

“The only answer is to privatise,” warns Leoka.

Listen to the audio for more detail.


This article first appeared on 702 : “Privatise Eskom! It’s the only solution to this mess” – Senior Economist


Recommended

by NEWSROOM AI

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Where should government invest with small businesses?

Where should government invest with small businesses?

The Money Show’s Bruce Whitfield interviews Allon Raiz, CEO at Raiz Corp on government focus with small businesses.

Waiting for the Ramaphosa rise – where is the stock market growth?

Waiting for the Ramaphosa rise – where is the stock market growth?

The Money Show’s Bruce Whitfield interviews Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital.

Pick n Pay's turnover for the year is around R82 billion

Pick n Pay's turnover for the year is around R82 billion

The Money Show’s Bruce Whitfield interviews Richard Brasher CEO at Pick n Pay on its growth.

Nene: SA needs a lot of structural reform to capitalise on global growth

Nene: SA needs a lot of structural reform to capitalise on global growth

The Money Show’s Bruce Whitfield interviews Finance Minister at Treasury Nhlanhla Nene on the IMF and World Bank Group meetings.

Get the best bits of ‘The Money Show’ emailed to you daily, right after it ends

Get the best bits of ‘The Money Show’ emailed to you daily, right after it ends

Do you enjoy listening to Bruce Whitfield’s The Money Show, but miss it sometimes?

"Eskom suspension was definitely a punishment!" - DA MP Michael Bagraim

"Eskom suspension was definitely a punishment!" - DA MP Michael Bagraim

There is no such thing as a non-punitive suspension, says Labour Lawyer Michael Bagraim.

Popular articles
[LISTEN]Tempers flare as Eusebius grills SABC's Maroleng about hiring and firing

[LISTEN]Tempers flare as Eusebius grills SABC's Maroleng about hiring and firing

Embattled public broadcaster's new COO, Chris Maroleng tries to defend SABC about Sakina Kamwendo incident.

'White South Africans learning an African language would show respect'

'White South Africans learning an African language would show respect'

A video of a white man speaking fluent TshiVenda went viral, but languages expert Dr Dowling says most black people speak English.

Water to be released from Berg River to Misverstand Dam to avoid Day Zero

Water to be released from Berg River to Misverstand Dam to avoid Day Zero

Government has put plans in place to prevent the Misverstand Dam from running dry in a week's time.

What Hashim Amla's fascinating story illuminates about South African society

What Hashim Amla's fascinating story illuminates about South African society

Writer Niren Tolsi says SA cricketer Hashim Amla is the living embodiment of a nation trying to express itself while healing.

Highly-criticised world athletics body's rule could end Caster Semenya's career

Highly-criticised world athletics body's rule could end Caster Semenya's career

She faces ongoing complaints from rivals about having an "unfair advantage" on the track, but how fair is this proposed IAAF rule?

Cape plumber designs device to ensure geyser water doesn't go down the drain

Cape plumber designs device to ensure geyser water doesn't go down the drain

Wattapac is a water-saving bladder and pump designed to help plumbers save as much as 1 000 litres of water a day.

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)