How world sees SA: Eskom throws MORE good money after bad – FT

EDINBURGH — Lengthy electricity blackouts have been a big embarrassment to the ruling ANC, says one of the world's most influential business newspapers. The Financial Times, which has headquarters in London, is watching President Cyril Ramaphosa closely. In particular, its editors are keeping tabs on how he is faring in undoing the graft that took place under Jacob Zuma and how he is dealing with the Eskom problem. The utility giant's coal plant projects have been flagged up as among the world's most expensive power projects, with a big question mark over whether it might be better to shelve them rather than throw more good money after bad. Eskom's performance is a thorny political issue as South Africa heads towards elections next month. – Jackie Cameron

By Thulasizwe Sithole

Eskom's plans to press ahead with building giant coal stations have captured global media attention – largely because they are outrageously expensive to complete and unlikely to alleviate the country's debt and electricity problems.

The Financial Times reports on how the struggling state electricity monopoly has said it would press on with finishing twin giant coal stations whose $20bn cost, overruns and design faults have worsened a debt crisis and severe power outages at the utility.

Jabu Mabuza, Eskom's chairman, is quoted as saying "we will continue to fix design problems" that have plagued the Medupi and Kusile plants, rather than abandon their construction after years of waste and swelling costs that caused the utility's debts to balloon to more than $30bn.

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