Page 13 - AfrElec Week 49

AfrElec NEWS IN BRIEF AfrElec

ESKOM

SA government signs Eskom

social compact

The south African Government has signed
a social compact that could see a portion of
pension funds being used to reduce Eskom’s
ZARR480bn debt and its huge interest service
bill.
The Eskom Social Compact, initially
proposed by labour federation Cosatu, was
signed by all social partners yesterday at
the 25th Annual Summit of the National
Economic Development and Labour Council
(Nedlac).
The deal could see the Government
Employees Pension Fund (GEPF), one of the
UK hosts first UK-Africa climate ambitions and to galvanise and inspire largest pension funds under PIC management,
climate action across the world.’’
write off the R104bn in Eskom debt they
Renewable Energy Minister Graham Stuart who moderated currently hold.
The panel discussion kicked off with UK
The social compact proposes a
Ministerial Symposium the Ministerial panel, which addressed comprehensive plan with 35 key intervention
opportunities, and challenges for renewables
areas to stabilise and rebuild Eskom.
The UK’s Department for International in Africa. African officials on the panel These look at job security at Eskom,
Trade (DIT) last week hosted the first ever included: HE. Dr. Mohamed Shaker, Minister tackling corruption and wasteful expenditure,
UK-Africa Renewable Energy Ministerial of Electricity and Renewable Energy, Egypt, reducing a bloated management, and
Symposium to deepen UK-Africa Abdessalam Mohamed Salih, Minister reviewing coal contracts, among others.
collaboration in the renewable energy sector. of Energy, Mauritania, Mr. Aziz Rabbah, One of the key principles is the need to
Bringing together British and African Minister of Energy, Mining and Environment, reduce Eskom’s debt burden.
leaders, the symposium created a platform Morocco, HE. Ernesto Elias Max Tonela, The agreement says that social partners
to exchange best practices, align objectives, Minister of Energy and Natural Resources, have committed jointly to mobilise adequate
and explore bilateral opportunities in the Mozambique, HE. Dr. Engr. Seleshi Bekele, financial resources for Eskom.
renewable energy industry. Minister of Water, Irrigation and Energy, Nedlac executive director Lisa Seftel said it
The virtual symposium brought together Ethiopia, Hon. Engr. Simon D’Ujanga, had been a long time coming for the Eskom
several energy ministers, international energy Minister of State for Energy and Mineral social compact. “This represents a historic
companies, investors and financiers across Development, Uganda, Tshifhiwa Bernard milestone for our country, demonstrating the
Africa along with the UK Minister for Exports Magoro, Head of Independent Power ability of social partners to come together
Graham Stuart MP. Producers, South Africa under challenging economic conditions and
Her Majesty’s Deputy Trade Commissioner The symposium included two other work together to chart a new path,” Seftel said.
for Africa, Alastair Long, opened the event panels. The first discussed UK capabilities Deputy President David Mabuza said
and laid out the agenda which included a chaired by Alastair Long, Her Majesty’s negotiation began about a year ago when
country prospect overview from Ministers Deputy Trade Commissioner for Africa and the country faced a power crisis with the
across Africa, three panel discussions and two included Globeleq, Aggreko, Winch Energy, unprecedented Stage 6 loadshedding.
presentations. Rolls Royce,Mott McDonald, Ryse Energy, “The social compact remains relevant and
Giving an opening remark at the Energy Storage Africa, Malaby Biogas and will be an important vehicle to hold Eskom
symposium, the UK Minister for Exports Konexa. The second panel was on financing to account to rectify the problems of the past,
Graham Stuart welcomed all the participants renewable energy opportunities and projects, and serve the people of South Africa with
and highlighted the UK’s collaboration with and featured panellists from the International sustainable supply of electricity …” Mabuza
Africa in the renewable energy industry. Finance Corporation (IFC), UK Export said.
In his words “I am delighted and proud of Finance (UKEF), Standard Bank, and CDC Political parties have vehemently rejected
our Government for hosting this symposium, Group. the proposal to dip into pension funds to
which highlights the UK is working hand in As a very critical part of what the UK rescue Eskom, and analysts have also warned
hand with African leaders in the renewable government wants to achieve by increasing about the dangers this could trigger to the
energy space. Our discussions were fruitful investment and aid more collaboration fiscus.
and enlightening, and helped us illustrate between UK companies, UK leaders and also Intellidex’s Peter Attard Montalto said the
how African nations can harness UK African leaders, the symposium is expected Eskom deal would increase political pressure
finance, investment, technology and grant to be bigger and more eventful in 2021 with a on the banks and asset managers to “do
opportunities to further their goals. This is in physical event. something” on this issue.
line with the UK’s hosting of COP26 next year, UK DEPARTMENT FOR INTERNATIONAL TRADE Montalto said the compact showed a
for which we are committed to increase our (DIT) dangerous propensity to grab hold of ideas

Week 49 10•December•2020 www. NEWSBASE .com P13