Latest news with #BusiMavuso
Bloomberg
a day ago
- Business
- Bloomberg
South Africa Has Met 10% of Reform Targets, New Tracker Shows
About a 10th of the targeted measures South Africa requires to tackle anemic economic growth have been fully implemented over the past 18 months, a new tracker showed. The gauge, developed by research firm Krutham for Business Leadership South Africa, reflects a 'good news' story, with 26 reform deliverables reported as complete out of about 240 that were required, the lobby group's Chief Executive Officer Busi Mavuso said in a foreword to the Reform Momentum Indicator.
IOL News
4 days ago
- Business
- IOL News
SALGA and business groups differing views over Nersa's electricity trading licences
The National Energy Regulator of South Africa's (NERSA) decision to grant electricity trading licences to private entities has sparked fierce debate with Salga and Eskom raising concerns. Image: Supplied A sharp divide has emerged between local government and business groups over the National Energy Regulator of South Africa's (NERSA) decision to grant electricity trading licences to private entities. The South African Local Government Association (SALGA) said it had deep concern over NERSA issuing licences before finalising trading rules, warning that the move poses a serious threat to the financial sustainability, constitutional mandate, and operational integrity of municipal electricity distribution systems. SALGA, which represents municipalities, said finalised rules were essential to ensure 'clear definitions of customer eligibility and trader rights; protection of redistributive and cross-subsidisation obligations embedded in municipal tariffs; [and] safeguards against predatory competition in licensed municipal areas of supply.' Among its key concerns is the potential erosion of municipal revenue, which funds not only electricity services but roads, waste management, and water supply. SALGA said, 'allowing traders to target only high-value, reliable customers would leave municipalities with a disproportionate share of defaulting customers.' SALGA also warned of 'infringement of constitutional mandates' and called for Nersa to suspend the approval of further trading licences until a transparent and balanced regulatory framework is finalised and consulted upon. However Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have urged Eskom to drop its legal challenges to the same licences. The organisations argue that litigation is undermining energy reform and delaying much-needed investment in new generation capacity. 'Eskom cannot be both the primary cause of our energy crisis and the gatekeeper of its solution,' said BLSA chief executive Busi Mavuso. 'South African businesses are failing, jobs are being lost, and our economy is stagnating. We need more power on the grid, now. For Eskom to spend public money on litigation designed to frustrate the very reforms government is championing and block the investment that can help secure cheaper and more secure energy is illogical and completely untenable.' BUSA chief executive Khulekani Mathe said: 'Our goal as a nation must be a reliable and affordable supply of electricity for every South African. This requires collaboration, not litigation.' He called for Eskom to align its actions with the President's Energy Action Plan and to support 'a vibrant and competitive market that encourages much-needed additional investment… key to longer-term energy security and making South Africa globally competitive.' While SALGA warns of 'destabilising the sector' without firm rules, BLSA and BUSA insist that delaying private entry into the market will slow progress towards ending load-shedding and reviving the economy. THE MERCURY
IOL News
08-08-2025
- Business
- IOL News
Business sector warns Eskom's court action threatens South Africa's energy security
Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have called on power utility Eskom to drop its legal challenges Image: Supplied Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have called on power utility Eskom to drop its legal challenges against electricity trading licences granted by the National Energy Regulator of South Africa (NERSA). The power utility launched the legal challenge last month after NERSA granted five trading licences to independent power producers and other market players. The utility argues that these licences violate NERSA's own rules by allowing multiple licensees to operate in the same supply areas without a proper regulatory framework in place. However, the two business groups argue that the power utility's move 'undermines the country's national goal of achieving energy security' by delaying the entry of new energy players into the market and sending the wrong signal to potential investors. In a joint statement issued to the media Friday, BLSA and BUSA accused Eskom of trying to protect its historical monopoly rather than supporting the government's energy reform agenda "By legally challenging NERSA's awarding of trading licenses, Eskom is actively working to protect its historical monopoly at the direct expense of a stable national power supply". BLSA CEO Busi Mavuso said Eskom's legal challenges are not only delaying urgently needed reform but also damaging investor confidence in the country's energy market. 'Eskom cannot be both the primary cause of our energy crisis and the gatekeeper of its solution,' Mavuso said 'South African businesses are failing, jobs are being lost, and our economy is stagnating. We need more power on the grid, now. For Eskom to spend public money on litigation designed to frustrate the very reforms the Government is championing and block the investment that can help secure cheaper and more secure energy is illogical and completely untenable.' The groups also highlighted that the Electricity Regulation Act has already attracted over R30 billion in renewable energy investments and created around 10,000 jobs. They added that a competitive market could bring in R132 billion more investment and thousands of additional jobs by 2030. 'Our goal as a nation must be a reliable and affordable supply of electricity for every South African. This requires collaboration, not litigation,' said Khulekani Mathe, CEO of BUSA said. IOL Business [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
08-08-2025
- Business
- IOL News
Business urges Eskom to withdraw legal challenges to bolster energy security
This is as Eskom last month launched a legal review of Nersa's granting licences for electricity traders, Green Electron Market, CBI Electric Apollo, GreenCo Power Services and Discovery Green and NOA Group Trading. Image: Supplied Banele Ginidza Business Leadership South Africa (BLSA) and Business Unity South Africa (BUSA) have strongly condemned Eskom's recent legal challenge against the National Energy Regulator of South Africa (Nersa), which granted five new distribution licences for electricity trading. The two organisations on Thursday argued that Eskom's actions were detrimental to the country's energy security initiatives and called for urgent governmental intervention. In a statement, BLSA and Busa called on Eskom to withdraw all legal challenges against the five electricity trading licences as this was creating uncertainty and sending a negative signal to investors. They said this was also delaying critical energy projects and may ultimately prolong the devastating economic and social impact of load shedding. The government's stated policy position is the unbundling of Eskom, encouraging private sector investment in generation and transmission, and creating a competitive market to help solve the energy crisis. BLSA CEO Busi Mavuso said Eskom's actions contradicted this policy direction and seek to stall or undermine the reform process. Mavuso said by legally challenging Nersa's awarding of trading licenses, Eskom was actively working to protect its historical monopoly at the direct expense of a stable national power supply. 'Eskom cannot be both the primary cause of our energy crisis and the gatekeeper of its solution. South African businesses are failing, jobs are being lost, and our economy is stagnating. We need more power on the grid now,' she said. 'For Eskom to spend public money on litigation designed to frustrate the very reforms the government is championing and block the investment that can help secure cheaper and more secure energy is illogical and completely untenable.' This is as Eskom last month launched a legal review of Nersa's granting licences for electricity traders, Green Electron Market, CBI Electric Apollo, GreenCo Power Services and Discovery Green and NOA Group Trading. Eskom has argued that the five trading license represent a fundamental and unilateral change in policy by Nersa, and could distort the provision of electricity and also allow traders to ursurp its customers to the detriment of its tariff pricing structure and those customers on subsidisation to gain access to electricity. However, the BLSA and Busa said to date, the Electricity Regulation Act has led to investment in new renewable generation projects of more than R30 billion, expected to generate nearly 10 000 new job opportunities in generation and storage alone. "Introducing a competitive wholesale market is essential to unlock an additional 6GW of new private solar PV and 3.5GW of wind by 2030. This represents a further R132bn in private investment and substantial job creation," they said. The organisations argued that the power utility's focus should be on expanding and modernising the national grid to accommodate a diverse range of energy sources, not on stifling innovation and competition through the courts. They said the future of South Africa's energy landscape was one of decentralised, mixed-generation capacity, where agile municipalities and efficient Independent Power Producers contribute to a resilient and robust national grid. 'We are calling on Eskom's board and executive management to align Eskom's mandate and actions with the reform direction as outlined in the President's Energy Action Plan and the Electricity Regulation Act,' said Khulekani Mathe, CEO of Busa. 'Introducing a vibrant and competitive market that encourages much-needed additional investment is critical for consumers to access affordable, clean power, which is key to longer term energy security and making South Africa globally competitive. Anti-competitive and discriminatory practices undermine the national agenda.'
The Citizen
04-06-2025
- Business
- The Citizen
Johannesburg's last hope may be the ballot box
A turnaround is possible if Johannesburg residents collectively use their votes to rid the city of unqualified, incompetent, corrupt people ruining a great city. We do not have to live like this, with our municipalities crumbling. The outcry against dysfunctional local governance is growing. Presidential and ministerial interventions are underway, and the auditor-general has released another devastating report. Will any of these fix our municipalities? Johannesburg, South Africa's richest city, is an obvious example of failure. Business Leadership SA CEO Busi Mavuso says Johannesburg, which has been in a state of gradual decline for many years, cannot manage its R89.4 billion budget adequately. Mavuso bemoans the lack of financial management skills in municipalities, noting: 'There simply aren't enough qualified people working in local government to ensure the accounts are done properly.' She doesn't single out individuals, but I will. Joburg's member of the mayoral committee (MMC) for finance, Margaret Arnolds, has no financial skills or qualifications. An internet search will tell you where she went to high school, while on Facebook she says she 'studied media philosophy at Unisa'. Ja, nee. Very reassuring. ALSO READ: Joburg can only be saved by fair municipal elections With that skills deficit, no wonder she did not want to engage with our team's constructive suggestions in the build-up to last week's budget speech. Joburg's budget is not fully funded, being over reliant on loans, whose repayments burden ratepayers. The trend is unsustainable. Borrow, borrow, borrow while, at the same time, chasing away ratepayers, is an approach worthy of a Darwin award. Who will fix Joburg? Certainly not the current crew. Cooperative Governance Minister Velenkosini Hlabisa recently launched a review of local government. However, in an interview with the Sunday Times, he gave the impression of passing the buck. Asked about consequence management, he deflected responsibility to provincial MECs. Pressed further, he said he wasn't going to ask the relevant Gauteng MEC why Joburg's mayor hasn't been fired. So, no pressure there. What about Cyril Ramaphosa's presidential working group? We are told the group is active in Joburg. It reportedly includes chambers of commerce, township economy business associations, plus civil society groups such as the Johannesburg Crisis Alliance and the SA National Civics Organisation. ALSO READ: Broken promises and failing services are sinking Joburg There is no mandate for this. No detail has been presented to council. Indeed many elected councillors feel undermined by this unelected intervention which has yet to show any progress. Daily there is social media coverage of 'high impact service delivery' attributed to the mayor. Despite photographs and hagiographic descriptions, the overall impact is risible. Deterioration continues apace. The daily grind of water and electricity outages, sewage spills, unreinstated excavations, faulty traffic signals and nonworking streetlights is relentless. More and more people are having their water or electricity cut off, often erroneously. Reconnections are taking too long, with ward councillors in the crossfire. Who will break this pattern? Hlabisa says some interventions in municipalities have been going on for more than 10 years, with no improvement. We cannot rely on any president, minister, provincial MEC, municipal MMC or civil society group to save Joburg. You can do it, collectively as voters. At the earliest opportunity, use your vote to get rid of the unqualified, incompetent, corrupt people who are ruining our great city. We do not have to live like this. NOW READ: Democracy is the winner in VAT hike drama
