Is Eskom the World’s Worst Company?

Obviously the bunch at Sanral had gone undercover. I assume that is why environmental groups Earthlife Africa, groundWork and Greenpeace Africa have nominated Eskom as the worst corporation in the world, in an awards event to be held at the World Economic Forum in Davos in January. Now Eskom may not be loved, but is it really THAT bad? We asked a few of our experts….

Mike Schussler from economists.co.za:

I am not sure if Eskom is the worst company in the world but their effect on SA economic growth is currently negative. It’s unfair to say they are the worst but it is true that their actions at present are having negative effects on inflation, growth, energy supply and are creating negative views on SA. But the problem is that Eskom does make money, but perhaps not enough to help SA build new power stations on time – and therefore help SA Corp make money and thereby create growth.

Mario Pretorius from Telemasters:

Eskom is the living monument to the policies of the government. Revered as the world’s lowest-cost producer two decades ago, it is now a shambles of short-term profiteering and reflects the disastrous self-serving economic policies of the ANC. These policies of fast-tracking, affirmative action, preferential black suppliers, BEE management, black woman owners’ tender preferences, forced retirement of expertise, preference of social goals, political pussy footing around debtors and a vicious and toxic disregard for basic economic laws makes for an almost fatal crippling of this economic giant. It is not only sad, it is threatening the very survival of the ZA economy. The sudden rush to trillion Rand nuclear power, the meltdown of its ability to manage projects and its inability to deliver electricity reliably, albeit at astronomically inflated prices, shows the dearth of common sense and absence of understanding of the essentials of a proper economy. Eskom deserves this – and in a few years, it will probably achieve the Lifetime Award, if it still exists.

Frans Cronje from the SAIRR:

In many respects, yes. Such rankings are for the most part silly things that contribute very little to our understanding of how the world works. Over the past 20 years, 6 million households have been connected to electricity for the first time in South Africa. Eskom’s expansion plans were initially undermined by the government. It does remain a wasteful monopoly – but that is because this is the policy of the government. It would be more accurate to make the government the beneficiaries of this reward.

Dawie Roodt from the Efficient Group:

Any company that encourages its customers to use less of its products must be totally crazy. So Eskom is a “worthy” candidate for this title. But do not blame Eskom only. The reason why it behaves so irrationally is because its political masters are so fixated on their socialist illusions that Eskom is prevented from acting rationally. Cut Eskom into smaller pieces, privatise it and create a competitive environment and Eskom may well win the award as the best company in the world!

Conclusion: Not sure I would give Eskom the award, but then, apart from Sanral, I am not sure who would beat them into first place……..

Tweet of the Day: Puns s(@omgthatspunny): I used to be a banker, but then I lost interest.

Awesome Todd (@Awesome_Todd): The worst part about being a giraffe is probably having other animals constantly asking you to get their kite out of a tree.

ZA Confidential is e-mailed to subscribers. For details on subscription rates, please contact zaconfidential@gmail.com. Media releases, invitations to presentations, and feedback on ZA Confidential can also be sent to the same address. Upgrade your conference or event by hiring ZA Confidential Editor John Fraser as a speaker or MC.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: