South Africa: South Africa Turns Right As Ramaphosa Hands Economic Levers to the Private Sector

What the report says

South African President Cyril Ramaphosa used his weekly newsletter on Monday to argue that state monopolies can hold back growth and that more private-sector participation can improve competition, lower costs and expand access. The remarks, reported by Daily Maverick and distributed by AllAfrica, were timed alongside Eskom’s annual results and a joint statement from Eskom and Business Leadership South Africa saying they had resolved their dispute over the utility’s unbundling process.

In the newsletter, Ramaphosa pointed to the historical example of telecommunications liberalization, saying that opening the sector to new operators helped transform service delivery and reduce the cost of communication. He used that comparison to make the case for unbundling Eskom, South Africa’s state power utility, as part of a broader shift in the country’s economic policy direction.

The Daily Maverick commentary framed the message as evidence that South Africa is moving further toward market-oriented reform, with more parts of the economy being opened to private involvement. As background, Eskom has long been central to South Africa’s electricity system, and debates over its restructuring have been closely tied to concerns about power shortages, investment and the role of the state. The development matters because electricity policy affects households, industry and wider efforts to stabilize the economy.