New Eskom board a step in right direction - economists

Government has taken drastic measures to address the issues that have been crippling the state-owned entity by appointing the new board led by Jabu Mabuza as the chairperson.

FILE: Jabu Mabuza, Eskom board chairperson. Picture: GCIS

CAPE TOWN - Economists say that the appointment of the new Eskom board is a step in the right direction.

Government has taken drastic measures to address the issues that have been crippling the state-owned entity by appointing the new board led by Jabu Mabuza as the chairperson.

Phakamani Hadebe has been appointed as the acting group chief executive.

This follows a meeting on Friday with President Jacob Zuma, deputy president Cyril Ramaphosa, Public Enterprises Minister Lynne Brown and Minister of Finance Malusi Gigaba.

Economist Chris Yelland: "The appointment of the new board is just the beginning. Eskom has not yet stepped back from the brink, in fact, work has only just started such as restructuring, recapitalisation and right-sizing the labour force."

Raymond Parsons from the North West University says that the appointment of skilled and credible leaders is a good start.

"We must see this step as breaking the mold at Eskom and trying to turn that situation round as soon as possible in the interests of not only Eskom but as the South African economy as a whole."