The locomotive of a Transnet SOC Ltd. freight train transports wagons of coal from the Mafube open-cast coal mine, operated by Exxaro Resources Ltd. and Thungela Resources Ltd., towards Richard's Bay coal terminal, in Mpumalanga, South Africa on Thursday, Sept. 29, 2022. South Africa relies on coal to generate more than 80% of its electricity, and has been subjected to intermittent outages since 2008 because state utility Eskom Holdings SOC Ltd. can't meet demand from its old and poorly maintained plants. Photographer: Waldo Swiegers/Bloomberg
Boardroom Talk
Boardroom Talk – Where Eskom went, Transnet is now following, only worse.
Today's piece from our partners at the FT is a must-read for those seeking context.
By Alec Hogg
Discovery has created a multinational business by finding ways to incentivise people to stop doing things that are bad for them, even if the impact is delayed. An unfortunate aspect of the human condition is that, while we know certain actions are harming us, the absence of immediate consequences reduces our resolve to address them.
This phenomenon also occurs frequently in mismanaged economies. Much like the lifelong smoker with emphysema, by the time those responsible become fully aware of the destructive impact, it's often too late. Tragically, this predictability isn't only apparent in hindsight.
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