New Public Enterprises Minister Malusi Gigaba has a lot to pick up that his ousted predecessor, Barbara Hogan, was forced to drop, if this key portfolio is to play its part in delivering a successful rollout of government’s massive infrastructure development programme as well as improve the overall competitiveness of the economy.
Under Hogan’s watch a modicum of stability was re-introduced at South African Airways and Eskom, through new chief executives Siza Mzimela and Brian Dames.
Transnet, however, is faced with the loss of acting chief executive Chris Wells, as well as the departure of group executive Vuyo Kahla, and still retains an acting chief financial officer, Anoj Singh. The process to of selecting a new board is in place, however, with Cabinet talks to begin within the month.
Arms maker Denel also announced the pending departure of its acting group chief, Talib Sadik.
Getting these appointments right is crucial.
Eskom, its huge build programme and its future role in the energy sector, looms largest here. It secured further loan guarantees from government to the value of R174-billion, covering its borrowing needs until 2017, and the completion of its Kusile power station.
It also announced the signing of a future loan from the Development Bank of Southern Africa. But it is still looking for an estimated R20-billion to recapitalise its balance sheet.
Deliberations on the draft Integrated Resource Plan will determine Eskom’s future role in the market. Experts have long argued for the introduction of independent power producers, as well as a shift to alternative energy sources.
The development of an independent operator will have to be kick-started under Gigaba’s watch.
Transnet, while relatively healthy financially, still has to improve its freight-rail operations. Weak local operations have long been the bugbear of mining companies in particular, which battle to get minerals to our ports.