Eskom raises stakes in fight for survival

Issue 330 - 16 Sep 2016 - By Dan Marks

A factional battle within the ruling African National Congress (ANC) has increasingly manifested itself in the energy sector since President Jacob Zuma’s ill-advised removal of finance minister Nhlanhla Nene in December. The conflict is coming to a head in a confrontation between national utility Eskom and the National Treasury on the one hand and Eskom and independent power producers (IPPs) on the other. But the seeds of the current crisis were sown long before this, in the failure to effectively reform the sector, Eskom’s desperate need for cash, and the tussle for control of the ANC and South Africa’s state-owned enterprises (SOEs).

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