“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
Venezuela inflation rate expected to top 1 000 000% by year-end

Venezuela inflation rate expected to top 1 000 000% by year-end

Venezuela – once as rich as Norway – is suffering an apocalyptic collapse without precedent.

What is a hedge fund?

What is a hedge fund?

The Money Show’s Bruce Whitfield interviews Fairtree Capital Portfolio Manager Jean-Pierre Verster.

100-year-old Truworths reports fewer sales and a 7.3% decline in earnings

100-year-old Truworths reports fewer sales and a 7.3% decline in earnings

The Money Show’s Bruce Whitfield interviews Truworths CEO, Michael Mark.

We have made progress in delivering on our promises to Marikana – Lonmin CEO

We have made progress in delivering on our promises to Marikana – Lonmin CEO

The Money Show’s Bruce Whitfield interviews Lonmin CEO Ben Magara.

4 tips for safely investing right now when everything is so hectic

4 tips for safely investing right now when everything is so hectic

Bruce Whitfield asks Personal Financial Advisor Warren Ingram for advice on how investors can safely navigate this hectic time.

"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
Police union calls for National Crime Summit to address police killings

Police union calls for National Crime Summit to address police killings

This follows the killing of two police officers in separate incidents in Cape Town on Friday.

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Swartz says he would have done anything to get the R1 million prize money.

'There is no way Magnus Malan could've done the things he is accused of'

'There is no way Magnus Malan could've done the things he is accused of'

Former police minister Adriaan Vlok has rejected accusations that former minister Malan was at the centre of a paedophile ring.

How Tracey Chambers is helping unemployed moms become entrepreneurs

How Tracey Chambers is helping unemployed moms become entrepreneurs

The Clothing Bank gives women access to discounted merchandise and 500 hours of training in money management and business skills.