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Ramaphosa announced the plan to divide the company into generation, transmission and distribution units in February, and there was an immediate backlash from labour unions who are concerned that the plan could lead to job losses. Eskom has 47,000 workers, a figure the World Bank has said is 66% too high, and debt in excess of R430bn ($30bn).
“What we will need to do going forward is to strengthen Eskom,” Ramaphosa said in an interview with Newzroom Afrika, a Johannesburg-based television station that started broadcasting today. “As the restructuring job unfolds, no we don’t see the loss of jobs.”
Eskom has been described by Goldman Sachs Inc. as the biggest threat to the South African economy and isn’t generating sufficient cash to meet its maintenance costs, resulting in frequent power cuts so far this year. The government agreed to give it a record R69bn bailout in February.
The company won’t cut power to consumers this winter, Ramaphosa said. South Africa’s winter runs from June until August.
Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.