In his reply to questions that will be posed by members of the opposition, Ramaphosa will, amongst others, have to clarify his plans on job creation, economic growth and rescuing State Owned Enterprises. This, after he announced that Eskom is one of the entities that will soon need to come up with a new business model and will be split into three state-owned entities.

Speaking during the State of the Nation Address, Ramaphosa acknowledged that the mismanagement and corruption at many of the state-owned companies have severely undermined their effectiveness, and cited Eskom as one of the entities that are in a crisis and poses a significant risk to the country’s economy. His plan to divide the entity into the generation, transmission and distribution divisions as part of the new business model, was, however, met with a mixed reaction as some members of opposition parties have shown support for it, while labour unions stand firm against it.

The National Union of Metalworkers of South Africa (Numsa) said this move could be regarded as privatisation of the utility and would threaten jobs. The South African Federation of Trade Unions (Saftu) has also opposed the idea, stating the power utility last year suggested job cuts as a solution to its financial crisis and Ramaphosa’s plan will enable that.

Meanwhile, the DA Shadow Minister of Public Enterprises, Natasha Mazzone, says amidst the on-going Eskom crisis and load-shedding, the DA will request the Speaker of the National Assembly, Baleka Mbete, to schedule an urgent parliamentary debate on the Eskom crisis ahead of Ramaphosa’s reply on Thursday.

Following his announcement on the establishment of a directorate within the NPA to deal with evidence that has emerged at the Zondo Commission of Inquiry, the debate on the State of the Nation Address is also expected to highlight the need for him to hold members of his cabinet implicated in corruption and state capture accountable.

OFM News