Why the revolution ate its children, and others

IOL News

2 days ago

Letters to the Editor.
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Letters to the editor
Why the revolution ate its children
The most humiliating aspect of post-independence and post-colonialism Africa, or even Latin America, is that the former struggle stalwarts never won a war against the former colonial powers.
It is possible that they won against colonial militaries that were already retracting and preparing for independence. Many countries gained independence through a series of events that occurred concurrently. Proof of this is that none of the African nations liberated as early as the 1940s, 1950s, and 1960s were able to unite against the white apartheid regime (supported by the West) – let alone match the SADF.
Instead, the SADF went on a rampage, insulting all of Africa and bombing neighbouring countries such as Lesotho, Angola, and Botswana. Nowadays, South Africans don't appreciate or consider this, especially when the ferment is present.
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However, one thing that struggle veterans accomplished and won in conserving – conservatives – is the ability to treat fellow Black people equally and more than the brutality of colonialism and apartheid.
And don't think the comrades didn't admire many of the Nazi and apartheid police tactics on propaganda and 'managing the masses'; whenever they sip on those expensive whiskies, they can never give up on mqombothi and Cuban cigars – true managers of their own, but only to their demise.
It's easy to predict the typical sarcastic behaviour of these individuals when they lose touch with 'our people.' Typically, after looting the nation and stripping it bare of any colonial and post-independence glory prescribed and maintained by 'racist white oppressors,' the comrades begin to focus more on 'identifying threats,' not like NATO or the IDF, but within the oppressed – and this is almost always where they excel.
As geniuses and war veterans, the comrades create separatist groups to divide and rule themselves, similar to how they were treated. Similarly, the ANC is directly responsible for the perceived stupidity of Dudula.
The goal is to capitalize on the masses' revolt and desperation without addressing the root cause, which is a long-term failure to govern effectively.
The entire point is to hold on to power for dear life because – as it was then among the serpents – 'This man should die for the nation than for the whole nation to perish!'However, as in Zimbabwe, it is threatening to do so here; these old dogs are unwilling to go down with the masses, preferring that the masses go down on their behalf and bear the brunt of sanctions, debts, and CIA-led coups and military operations while they, like parasites, sink their claws into the last vestiges of colonial glory.
The masses, like their leaders, are largely unconcerned and only have each other and foreigners to vent their frustrations. And so they act and believe they are heroes – but heroes of lies, murder, theft, and self-destruction, which they will realize with great and foolish pride only when nothing remains. | Khotso Moleko Mangaung
Let Eskom compete – or let it collapse
The government is not equipped to determine the true cost of electricity. Any attempts it makes to do so only serve to distort market signals and drive Eskom and other electricity parastatals further down the path to ruin.
Last year, electricity minister Kgosientsho Ramokgopa stated that high electricity prices are 'untenable' and 'disproportionately affect the poor.' Both these things may be true, but as a politician, Ramokgopa is not equipped to make these statements. He is motivated by political expediency and ideology – not market realities.
Despite the minister's condemnation of high prices, Eskom and NERSA have continued to hike electricity tariffs – often above inflation. But it wasn't always this way. Prior to the start of loadshedding in 2007 and onwards, South Africa had some of the cheapest electricity in the world.
But this wasn't because of efficiency or good governance. Eskom was politically mandated to maintain cheap electricity – damn the costs. This was its purpose since its inception in 1923. And in its quest to deliver unsustainably cheap electricity to drive industrialisation based on false pretence, Eskom failed to achieve even the most Kindergarten of economic rules. It failed to cover its costs.
Eskom was never allowed to behave like a real business. Even when energy demand surged, it could not raise prices or reinvest profits to build new power plants. By the time blackouts hit in 2007, the cracks were decades old.
Government-backed loans and subsidies kept Eskom alive, but the parastatal increasingly had to cut costs to keep prices low. It fired key experts, mothballed power stations, and delayed maintenance and expansion. Sanctions and turmoil became a blessing in disguise during the Apartheid era, as the economy shrunk – allowing Eskom's decreased ability to produce electricity to go unnoticed.
But post-1994, the ANC added other mandates to Eskom. On top of providing cheap, plentiful electricity, Eskom also had to engage in racialised politics and expand electrification across the country. This resulted in mismanagement and corruption, as the utility lost sight of its key purpose. If the electricity prices were market driven, the laws of supply and demand would have warned Eskom that it was expanding demand far faster than its supply. It could have cautioned demand growth with higher prices, using the increased profits to build reserves and expand production. But Eskom is not a rational economic actor – it's a political one. It only cared about obeying orders from politicians who only care about votes and graft.
When pricing is dictated politically, there's no incentive for efficiency, innovation, or even sustainability. On top of corruption and mismanagement – all key features of a state-run enterprise – these unsustainably low prices meant that Eskom couldn't build cash reserves, hire the engineers it needed, or build new power plants on time. So, when economic and population growth finally caught up with electricity production, we experienced rolling blackouts.
If prices had been market driven, this wouldn't have happened. A power utility would be able to raise prices when electricity is scarce and lower them when electricity is plentiful. But for this to be possible, Eskom needs to be privatised, and its monopoly removed.
Competition between businesses drives innovation and holds businesses accountable. We cannot know the true price of a good when there is only one seller. Private electricity companies competing to sell as sustainably cheap electricity as possible would result in not only a decent price of electricity that reflects reality – but also give correct signals to the economy so that economic growth doesn't hinge on a lie.
South Africa's electricity crisis is not just about corruption or incompetence. It is about the fundamental failure of central planning. By removing Eskom's pricing power and monopolising generation, the government cut the lifeline of basic economics: profit, reinvestment, and price signals.
If we want a sustainable, affordable energy future, we must return to first principles: let markets determine prices, let private companies compete, and let Eskom finally face the real cost of doing business – or get out of the way. | Nicholas Woode-Smith Free Market Foundation