ANC wants to sell off parts of Eskom

The financial crisis at South Africa's only electricity utility has led to calls by the ruling party to sell off a considerable stake in Eskom.

The ANC is mulling over policy which outlines the sale of a part of Eskom to raise funds for the embattled utility and to ensure its financial crisis comes to an end. Currently, Eskom is seeking an additional increase from NERSA which could see electricity costs hiked another 25.3% this year alone.

According to The Sowetan, a proposal was drawn up by the ANC last year. Enoch Godongwana, economic transformation committee head said the government would remain the majority shareholder of Eskom with entities such as the Public Investment Corporation buying and holding a substantial stake. Godongwana's statement was confirmed by Phumza Macanda, acting treasury spokesperson.

"Right now we are exploring ideas of what can be done to put Eskom on a financially-sustainable footing in the long-term...So, one of the options being considered is to ring-fence and sell stakes in Eskom's non-business or power stations as well as into Eskom's business as a whole."

The possibility of Eskom being sold off has been met by resistance by the National Union of Mineworkers.