JAUNDICED EYE: Reality casts a pall over seasonal cheer in South Africa

Published Dec 19, 2019

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The end of the school term came early this year, with the seaside-bound traffic already snaking down to the coast in the first week of December.

And an economy deep in the doldrums meant that business and industry was slowing earlier than usual, before the traditional month-long festive season’s total shutdown.

Under such conditions of reduced electrical demand, a nation gatvol of government crises, institutional collapses, and political scandals

was looking forward to a happy holiday. Instead, Eskom, out of the blue, briefly imposed an unprecedented Stage 6 load shedding, with rolling blackouts of up to four-and-a-half hours a day, sparking howls of public disbelief and fury.

It is an indication both of Eskom’s incompetence and the government’s lack of comprehension at how fast South Africa’s downward spiral is happening, that there were no outage timetables available. A Stage 6 collapse of the national grid had not been imagined, never mind planned for. Belatedly, Eskom warned that it was now readying for stages 7 and 8 also, meaning that power would be cut for up to 12 hours a day. Eskom’s excuses have ranged from wet coal to broken conveyor belts.

President Cyril Ramaphosa, cavorting in Egypt on a minor diplomatic junket, hurried home and threw his own bolt into the turbine, stating there had been sabotage by Eskom workers.

A week back, Ramaphosa tweeted how magnificent the new power stations at Medupi and Kusile were.

A week later, he professed - it has become his hackneyed signature response to an apparently unending stream of previously unthinkable

events - to be “shocked” by the collapse of the grid.

There are many on the centre-right who are gleeful about the hastening pace of collapse of the state-owned entities (SOEs). The sooner this happens, goes the reasoning, the sooner the governing alliance will be forced to abandon its tattered socialist dreams of a command economy.

Similarly, there are ideological pragmatists, too, in the ANC, who see in the imminent rolling collapse of SOEs an opportunity of sorts.

It means, goes the reasoning, that the relentless momentum of unfolding events will provide the government with a reason to ignore the policy shackles that were imposed on Ramaphosa by the Zuma faction.

They may be right. A month ago, the unions pledged to their members that there would be above-inflation increases, no job cuts, and no privatisation at the overstaffed, overpaid national airline. Today, SAA is in a business rescue process that - if it manages to avoid bankruptcy - will slash the payroll, freeze wages, and at the very least, open the door to public-private partnerships.

Just because ministers have stated Eskom is “too big to fail” doesn’t

mean that the same processes will not play out there. The only thing “too big” at the power utility is the gargantuan level of indebtedness

and the speed with which debt is growing, making the “fail” part of the equation inevitable.

This means, as with SAA, that the ANC is having to contemplate the previously unthinkable.

Independent power producers will soon be allowed, for no other reason than if the government does not allow it, South Africa’s economy will not grow next year. Take with a pinch of salt the reiteration, after the ANC’s national executive committee (NEC) meeting this week, that privatisation is not part of the “bold and creative solutions” the government has in mind for the troubled SOEs.

The truth is, at long last, the

ideological doors are being battered open by reality. The NEC conceded that the government would, however, consider private investment, with

the caveat that the state retained majority control.

Admittedly, I may be too optimistic in my reading of the runes. The press statement after the NEC meeting devoted six lines to lamenting the death of Struggle stalwart Ben Turok, five lines to congratulating Zozibini Tunzi on winning the Miss Universe contest, and only four anodyne lines to Eskom’s load shedding.

Perhaps reality will have to bite a little harder before the message sinks home. Brace yourself for Eskom’s Stage8. Or even 10?

Happy holidays.

- Follow WSM on Twitter @TheJaundicedEye

The Independent on Saturday

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