The business sector yesterday welcomed the appointment of Dr Kgosientso Ramokgopa as South Africa’s “Mr Fixit” with cautious optimism, warning of potential “turf wars” between all the ministries responsible for Eskom.
Ramaphosa on Monday named Ramokgopa as the Minister of Electricity whose primary task will be to reduce the severity and frequency of load shedding and oversee the implementation of the Energy Action Plan.
Ramaphosa said he would transfer certain powers and functions, in terms of section 97 of the Constitution, to enable Ramokgopa to do this work.
Ramokgopa is expected to facilitate the co-ordination of the numerous departments and entities involved in the crisis response, work with the Eskom leadership to turn around the performance of existing power stations, and accelerate the procurement of new generation capacity.
Business Leadership SA CEO Busi Mavuso said they hoped the government would be united in implementing the Energy Action Plan, but said Ramokgopa’s post could potentially lead to clashes with the departments of mineral resources and energy (DMRE), and public enterprises (DPE).
“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 said.
“(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, Ramokgopa was the head of Investment and Infrastructure in the Presidency.
He was also Gauteng MEC for Economic Development, Agriculture and Environment and has previously held the position of executive mayor of the City of Tshwane.
Business Unity SA CEO Cas Coovadia said they would continue supporting the government to implement the Energy Action Plan even though they were previously opposed to the appointment of a minister of electricity.
He said Ramokgopa’s appointment as minister of electricity was a critical one, and “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.”
Ramokgopa holds a number of academic qualifications which include a BSc Civil Engineering (University of Durban-Westville), Master of Public Administration (University of Pretoria), Master of Business Leadership (Unisa), a Certificate in Executive Development (Stellenbosch) and a PhD in Public Affairs from the University of Pretoria.
Old Mutual Wealth investment strategist Izak Odendaal 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 said.
“As a newcomer to Cabinet, Ramokgopa will need full political backing from President Ramaphosa to fulfil his mandate.”
Chris Campbell, the CEO of Consulting Engineers SA, said they acknowledged that Ramaphosa’s interim Cabinet reshuffle meant there was unlikely much of a difference to be seen in the short term.
“(Ramokgopa) needs to seize the opportunity for collaboration with the private sector for funding and with our member companies who have the technical knowledge and capability to deliver results with the speed that our country so desperately needs in order for economic growth,” Campbell said.
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