Cyril Ramaphosa Unveils Plans for Eskom: Private Investment to the Rescue

• South African state-owned entities Eskom and Transnet are opening to private investors for critical infrastructure upgrades
• President Cyril Ramaphosa confirmed plans to unbundle Eskom for independent transmission
• Transnet will partner with ICTSI to modernise the Durban Container Terminal with an R11 billion investment

South Africa’s biggest state-owned companies, Eskom and Transnet, are slowly being opened up to private companies, even if it doesn’t look like a full sell-off.

According to a report from the Daily Investor, after years of mismanagement and overspending, these public companies simply don’t have the money to invest in the infrastructure the country desperately needs. While they’ve improved operations, they can’t fund major upgrades on their own.

Private investors are stepping in

That’s why private investors are stepping in. Economists call it “backdoor privatisation”, where private companies are taking over roles that used to be done exclusively by state firms, while Eskom and Transnet now compete with them.

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President Cyril Ramaphosa confirmed this approach during his 2026 State of the Nation Address. He announced that Eskom will be unbundled, with a fully independent transmission company being created. This move will finally open South Africa’s electricity market to competition, letting private companies generate power alongside Eskom.

Experts say this isn’t about ideology—it’s about necessity. South Africa’s government doesn’t have the money to fund big infrastructure projects anymore. Public debt has skyrocketed, and state companies’ finances are too weak to do it alone.

Stanlib chief economist Kevin Lings explained:

“Deregulation is the only option left. The state can’t expand anymore, so private investment is essential to keep the economy moving.”

Currently, South African companies are sitting on over R1.8 trillion in cash, waiting for a stable environment to invest in growth and jobs. Right now, most of it is just parked in safe accounts while infrastructure and job creation lag.

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Ramaphosa sidelines Electricity Minister Ramakgopa on Eskom plans

Ramaphosa and Ramakgopa clash on Eskom plans

President Cyril Ramaphosa has taken control of key decisions on how state power utility Eskom will be split up, effectively sidelining Electricity Minister Kgosientsho Ramokgopa and transferring authority over the process to a special task team. This move came after the minister’s proposed unbundling plan, which would have kept transmission assets under Eskom. The announcement sparked criticism from business groups and investors who want a fully independent transmission operator.

Articles on Eskom and Transnet

• Transnet has signed a major 25‑year deal with Philippines‑based International Container Terminal Services, Inc. (ICTSI) to expand and upgrade the busy Durban Container Terminal Pier 2, bringing in about R11 billion of investment to modernise the facility. The partnership is meant to improve cargo handling, increase capacity, and boost efficiency at South Africa’s largest container hub, which has faced criticism for delays and poor performance in recent years.
• The Gauteng High Court in Pretoria rejected a proposed R54 billion tariff deal between Eskom and the National Energy Regulator of South Africa (NERSA) that would have increased electricity prices sharply without proper public input. The judge ruled that fixing the regulator’s tariff calculation errors through a secret settlement and then imposing big hikes on consumers wasn’t lawful because the public wasn’t consulted.

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Briefly News also reported that President Cyril Ramaphosa said the ANC can still lead South Africa through its biggest challenges, including fixing the electricity and transport crises hitting Eskom and Transnet. He told party supporters that load‑shedding will continue to be reduced and that the problems at Transnet’s ports and rail networks will be addressed as part of the ANC’s plans. Ramaphosa expressed confidence that these improvements will help rebuild public trust and support ahead of future elections.

Proofreading by Kelly Lippke, copy editor at Briefly.co.za.

Source: Briefly News