Ramaphosa and Eskom chief clash over timetable for grid handover to private firms

President Cyril Ramaphosa and Eskom board chair Mteto Nyati are at odds over the pace of handing over the national power grid to a newly created, independent entity. The plan involves shifting about $6 billion in transmission assets so private power producers can sell electricity directly, ending Eskom’s long-standing monopoly. Nyati cautioned that removing these assets could violate existing loan covenants, potentially allowing lenders to demand repayment.

In response, the presidency said it is negotiating protective measures with bondholders and warned that any delay would undermine confidence in the country’s energy reform. The reforms have already secured billions of dollars in private investment, helping to eliminate the rolling outages that have constrained South Africa’s economy. With excess generation, Eskom is now looking to serve data-center operators as a new market. The dispute highlights the tension between rapid liberalisation and financial stability concerns.