Business sector welcomes Minister of Electricity appointment

The South African business sector has welcomed the appointment of Gosientso Ramokgopa as the new Minister of Electricity.

The sector believes the former Gauteng MEC for Economic Development is Mr. Fix It, and Business Leadership SA CEO Busi Mavuso said they hoped the government would be united in implementing the Energy Action Plan.

BLSA said Ramokgopa’s post could potentially lead to clashes with the departments of mineral resources and energy (DMRE), and public enterprises (DPE).

In addition, a leading economist says markets will question President Cyril Ramaphosa leaving under-performing ministries untouched.

“With resolving the electricity crisis so critical to our economic prospects, BLSA hopes the government will be united in implementing the Energy Action Plan,” Mavuso is quoted by IOL Business.

“(But) it is concerned this attempt to endow the new electricity minister with overall responsibility may lead to turf wars which may not be beneficial to smooth progress.”

Prior to his appointment in the South African cabinet, Ramokgopa was the head of Investment and Infrastructure in the Presidency and he also previously held the position of executive mayor of the City of Tshwane.

For Business Unity SA CEO Cas Coovadia, he said they would continue supporting the government to implement the Energy Action Plan.

“We will engage him urgently to see what his thinking is on dealing with the short-term load shedding crisis and the medium-term energy crisis,” Coovadia said.

“He will have a significant challenge in co-ordinating roles between his department and that of the minister of mineral resources and energy and how he utilises the powers accorded to him under the state of disaster.”

According to Old Mutual Wealth investment strategist Izak Odendaal, he highlighted Ramokgopa’s recent experience as head of Infrastructure as something that stood him in good stead in this new role.

“The question marks are not so much about the individual, but about the role, particularly how it relates to the existing ministries with responsibility for electricity, namely DPE and DMRE,” Odendaal added.

“As a newcomer to Cabinet, Ramokgopa will need full political backing from President Ramaphosa to fulfill his mandate.”