Eskom and Iscor were formed to feed the railway network’s need for cheap electricity and steel.
Though formed by the state, Eskom and Iscor enjoyed very little state support in their infancy. To survive, they had to cooperate with the private sector companies they were meant to compete with.
South Africa’s Finance Minister Tito Mboweni must walk a fiscal tightrope.
South Africa's finance minister has chosen to walk a tightrope rather than face tough choices about cutting expenditure or raising taxes.
Load shedding has stopped in South Africa over the last year but that doesn’t mean the country’s power problems are all gone.
It would be better to proactively restructure South Africa's electricity sector to spur innovation and investment and reduce costs before another crisis hits and further derails the economy.
Electricity pylons from Cape Town’s Koeberg nuclear power plant. State-owned companies help to provide infrastructure for economic development.
State-owned companies are not generally needed to provide goods. Rather, they are needed to provide the foundation for a well-functioning economy and a healthy, well-informed populace.