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’s power demand since 2008.
That could potentially signal a dissolution of the Department of Public Enterprises, which oversees Eskom, logistics company Transnet SOC Ltd. and several other entities. Eskom, which supplies more than 90% of South Africa’s electricity, has been at the epicenter of a national energy crisis, because its old and poorly maintained plants can’t 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.
Public Enterprises Minister Pravin Gordhan has prioritized anti-corruption measures at Eskom and defended outgoing Chief Executive Officer Andre De Ruyter.