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Eskom will sign renewable IPPs – Zuma

Focus on radical socio-economic transformation.

President Jacob Zuma in his State of the Nation Address on Thursday, seemingly put the country’s acclaimed Renewable Independent Power Producers’ Programme (REIPPP) back on track.

He announced that Eskom will sign the outstanding Power Purchase Agreements (PPAs) “in line with the procured rounds”.

This seems to indicate that Eskom will be bound to the tariffs agreed upon when the IPPs were selected as preferred bidders. The utility has been delaying the conclusion of PPAs and lobbied to renegotiate the tariffs to 62c/kWh or less.

Moneyweb earlier reported that 37 IPPs who were subjected to the delays were not able to proceed towards financial close. They needed resolution of the impasse in this quarter to ensure their continued commitment to the R50 billion investment and 2 000 permanent jobs their projects represent.

Zuma’s speech started more than an hour late after repeated spurious points of order by opposition parties that saw the EFF forcefully removed from the house and the DA walking out.

Zuma focused on radical socio-economic transformation, which he said means “fundamental change in the structure, systems, institutions and patterns of ownership, management and control of the economy in favour of all South Africans, especially the poor, the majority of whom are African and female”.

He said ownership and top management in the economy are still heavily in favour of whites, with blacks underrepresented. “The skewed nature of ownership and leadership patterns need to be corrected. There can be no sustainability in any economy if the majority is excluded in this manner,” he said.

Zuma said the state will play its role in the economy to drive transformation through practical programmes and “utilise to the maximum, the strategic levers that are available to the state”.

These levers, he said, include legislation, regulations, licensing, budget and procurement as well as broad-based black economic empowerment charters.

The state’s R500 billion annual procurement budget and R900 billion infrastructure investment programme would be used for this purpose, he said.

As an example of the first of such programmes, Zuma referred to the regulations published on the Government Gazette on January 20, which require the big contractors to subcontract 30% of their business to black-owned enterprises.

Zuma praised the competition authorities for fighting collusion and pointed out that uncompetitive conducts had been criminalised since May 2016. He promised further amendments to the Competition Act to address the concentration in many industries where a few players dominate and squeeze out newcomers.

He said the property sector is valued at R700 trillion, with the subsidised sector being valued at R1.5 trillion. Nevertheless, less than 5% of the sector is owned or managed by black people and Africans in particular, he said. He said a draft Property Practitioners Bill would be published for public comment with the aim of establishing a more inclusive, representative sector as part of radical economic transformation.

Black-owned small business will benefit from government’s R100 million programme of capital investment and maintenance of harbours as well as opportunities in ICT, he said.

Zuma welcomed the recovery in commodity prices and urged parties to work together towards the new Mining Charter that he said is aimed at de-racialising mining ownership.

“We will continue to pursue direct state involvement in mining. The Mining Company of South Africa Bill will be presented to Cabinet and Parliament during the year,” he said.

The Mineral and Petroleum Resources Development Amendment Bill, he said, was sent back to Parliament due to a lack of proper public participation.

Zuma said he has decided to refer the Expropriation Bill back to Parliament due to concern about its constitutionality as public participation might have been inadequate. He appealed to claimants to accept land instead of monetary compensation. “Over 90% of claims are currently settled through financial compensation, which does not help the process at all. It perpetuates dispossession. It also undermines economic empowerment,” he said.

Governement has already reprioritised R32 billion in support of higher education, Zuma said.

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Promises, promises.

That thing called the electron and is missing, then over-supply (in a non-green way, delivered 5 years late at three times the cost due to ANC corruption) is a damning indictment on the ANC leadership.

The electron might get stolen and not paid for but unlike the ANC doesn’t lie.

This is Orwellian.
I hope that these speeches will be preserved for posterity.
The true extent of the plunder, destruction and injustice wrought by this man and his party’s dystopian ideas and flagrant racism will only be understood in two generations’ time.

I would actually love for a reputable research agency to do a proper report on who owns what in SA. Zuma mentioned last night that only 10% of the JSE is held directly by black people. With all the BEE deals, I find this hard to believe. I would also like to know what % is held directly by other races. I’ve always been under the assumption that the majority of the JSE is held by institutional investors. the full indirect owner

And the land issue, Zuma mentioned 8 million hectares has been transferred but later on said a lot of black people took cash instead of land. Again, what is the total value % transferred then? I must applaud the farmers who are trying to create vehicles to have farm workers involved in the ownership of the land, now that is a great sustainable initiative and is clearly commercially viable.

On the workplace, there has been BEE/AA for 20 years and it is still going too slowly, where are we trying to get to? I can personally attest to being the best candidate for a job on multiple occasions only to be told later on that the hire was blocked because of skin colour. That is fine, I understand why these policies need to be in place but then do not come out afterwards and say hey, you are not doing enough.

One thing I did like about the speech was the word poor was used more than racial links. That for me needs to be the focus, let’s put more effort into uplifting the poor. Of course for that to be effective then the government needs to be efficient and the amount of cash being funnel out of the system through corruption and mismanagement is going to make it difficult to have any meaningful impact on the poor.

David Shapiro made a comment on this and showed some graphs to back up his statements that the JSE yes is only 10% held by blacks but the assumption shouldn’t be that the rest is held by whites.
The graph showed that 64% of the JSE is foreign owned and that white ownership accounts for about 21%.

Fair enough, the problem I have with these stats is that politiicans throw them around and don’t give the full picture. I know that the PIC owns a large chunk of the JSE as well as the majority being held by foreign/institutional investors but by saying only 10% is held by black people implies that 90% is owned directly by white people which is just not true.

I suppose my point is that I would like to see a report that gives the full picture, how much wealth has been created for black people in the work place, JSE, land etc and then we can start to ask questions about how we accelerate that. Providing simple stats is not going to get us there.

We can start by investing in building our wall between Zim/Mozambique – we can create ample jobs this way, also keep out the millions of illegal immigrants, safeguarding our own border, protecting south African jobs, crime prevention and the economic burden of social expenditure relating to illegal immigration. – housing, food, health, deportation ext.

As long as the economy is divided with legislation and Acts, like BEE ,race and gender transformation, by law, equality will never a norm and the gap between all just grow larger.

To transform all needs to adapt, the one behind must rise to get to the top, not be placed there on transformation – the one at the top can not wait and turn back, two wrongs do not make a right.

Success and respect comes from hard work and not by legislation.

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