The Economist 14Dec2019

(lily) #1

40 Middle East & Africa The EconomistDecember 14th 2019


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word—I should retire or resign.”
There are signs of progress. On Novem-
ber 21st investigators arrested Bongani
Bongo, a security minister under Mr Zuma.
He was charged with attempting to bribe an
official to obstruct investigations into the
looting of Eskom, a state-owned electricity
provider. Mr Bongo, who remains an mp
(chair of the home-affairs committee, no
less), is the first politician to be arrested in
relation to state capture. A few days later
the npa won another victory when a court
froze the assets of Regiments Capital, a
company accused of orchestrating corrupt
deals linked to the Gupta brothers, busi-
nessmen with close links to Mr Zuma.
Yet even as cases are built, Ms Batohi be-
lieves that the npais serving as a deterrent

to graft. Previously there was little chance
that corruption would be investigated, “so
it was a risk worth taking”, she says. “Those
days are gone.”
The third challenge facing the npa,
though, is that reclaiming a captured state
means more than putting crooks in jail. It
will require Mr Ramaphosa to make good
on his promises to reform failing state-
owned companies such as Eskom (see next
article). It also requires him to ensure that
prosecutions are not seen as political.
Under Thabo Mbeki (president from
1999 to 2008) and Mr Zuma the npawas
used as a political tool. By contrast, Mr Ra-
maphosa appointed Ms Batohi after a mer-
itocratic, transparent process. The presi-
dent “unwaveringly gave me his word that

there will be absolutely no interference” in
the work of the npa, says Ms Batohi. “Since
my appointment, that has been absolutely
the case.”
Yet opponents of Mr Ramaphosa—
many of whom want him out so they can
keep stealing and stay out of jail—will al-
most certainly cry foul if senior figures in
the ruling African National Congress are
prosecuted. For now, all the npa head can
do is get on with her job. Success will not be
clear-cut, but if she can help convict the
crooks it will inspire not just South Afri-
cans but reformers in other venal regimes,
such as Angola, Pakistan and Ukraine. “It’s
not going to be easy. It’s not gonna be
quick,” she says. But, adds Ms Batohi, “fail-
ure is not an option.”^7

I


n recent daysthe only thing darker
than South Africans’ homes has been
their humour. On December 9th Eskom,
the state-owned power utility, an-
nounced its biggest-ever blackouts,
turning off the lights across Africa’s most
industrialised country. Some wags used
the remaining battery on their phones to
vent on social media. “The Ein South
Africa stands for electricity,” read one
post. Another suggested that “Eskom’s
been bad all year...in the hope they’ll get
coal for Christmas.”
Many South Africans have stopped
seeing the funny side. The failure of
Eskom’s coal-fired power stations meant
the loss of almost a third of its 44,000mw
capacity (14,000mw, roughly the poten-
tial output of Denmark). The blackouts
may tip the country into recession for the
second time in two years.
Eskom was quick to blame inclement
weather. It has indeed been very rainy.
But the root causes are gross mismanage-
ment and rampant corruption. Two huge
new power stations—Medupi and Ku-
sile—are years behind schedule and
billions of dollars over budget. Under
Jacob Zuma, South Africa’s former presi-
dent, Eskom was systematically looted.
Today it is broke, with debts of 450bn
rand ($30bn) that are crippling the public
finances (see Buttonwood).
Cyril Ramaphosa, Mr Zuma’s succes-
sor, has promised better management
and the “unbundling” of Eskom’s three
main parts: generation, transmission
and distribution. Yet there has been little
urgency. Andre de Ruyter, the incoming
chief executive, does not start until
January. Worse still, Mr Ramaphosa

seems not to grasp the scale of the crisis.
On the day the huge blackouts were
announced he described Medupi as “a
fitting symbol of the importance of our
state-owned enterprises”.
The tragedy is that the crisis is avoid-
able. Unbundling could be accelerated
and assets could be sold to more efficient
operators. The government could allow
cities and companies to buy their own
power and expand its auction scheme
that allows private renewable-energy
providers to sell to the grid. Mr Rama-
phosa may fear the political conse-
quences of such steps, if his party and its
allies in the trade unions complain. But
the alternative is surely worse. South
African voters are already tiring of a
well-meaning president who cannot
keep the lights on.

A failure of power


South Africa’s electricity crisis

JOHANNESBURG
Cyril Ramaphosa is cleaning house, but he cannot keep the lights on

What they used before candles

A


gaggle ofchildren play outside Do-
rothy Nabitaka’s front door on the out-
skirts of Kampala, the Ugandan capital. She
shares her home with 17 people: her moth-
er, child, sisters, nephews, nieces, cousins,
and several children she has taken in sim-
ply because they had nowhere else to stay.
She helps others pay school fees with the
money she earns selling animal feed. In all
she gives away around four-fifths of her in-
come, she reckons, though she is not really
counting. “I don’t like seeing people suffer-
ing,” she explains.
Sharing within social networks is cen-
tral to economic life in much of Africa. Al-
though kinship systems vary, obligations
typically extend beyond the nuclear family
to include the children of siblings as well as
cousins, or sometimes larger units such as
clans. People turn to friends and relations
for help with school fees, hospital bills, or
for a place to stay. Where formal institu-
tions are weak, the family is bank, business
partner and welfare state.
At times the pressure to share can be sti-
fling. “People make you feel guilty when
they see you with a house, car or even a
good dress,” says one Ugandan journalist.
Black South Africans talk about paying a
“black tax” to support a web of dependents.
In Ethiopia, Pentecostal Christianity has
taken off, in part because it offers an escape
from traditional kinship obligations.
One way to keep hold of your money is
to hide it. Zainab Lamin, a housekeeper in
Sierra Leone, tells her sisters she is unem-
ployed. “If they know I have a job,” she says,
“they will be sending their children to

KAMPALA
In much of Africa the family is bank,
business partner and welfare state

Africa’s sharing economy

Brothers in alms

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