By: The Banking Association South Africa

The appointment of a new board of directors for Eskom is necessary to address the crisis of confidence in South Africa’s leadership and economy.

The new board will need to urgently address serious structural problems at Eskom and a potentially devastating knock-on effect on our economy if it fails to meet its financial obligations. Their appointment must be only the first step towards tackling the corruption and systemic mismanagement in state-owned enterprises, which is contributing to the country’s ratings downgrades.

If South Africa is to position itself as “open for business” at next week’s World Economic Forum in Davos, government will need to provide clarity on what other, immediate actions it plans to take to re-establish domestic and international confidence in South Africa as an investment destination.

The Banking Association South Africa wishes the new Eskom board well in the significant tasks ahead.