I was having a conversation with a good mate who happens to be in business, over the past week, and the conversation veered off into him expressing his frustrations with the current state of affairs and its negative impact on business people like him.
My mate happens to be operating in the electricity and power industry, servicing both public and private sector clients within the industry’s multi-faceted value chain. We were sitting at a restaurant experiencing load shedding challenges which meant that some of the items on the menu could not be ordered, which frustrated the both of us, as the unavailable menu options constituted some of the main things that we like this particular restaurant for.
Anyway, amidst this load shedding-induced frustration, my mate went on to tell me about a power station that one of the big metros in Gauteng privatised a few years ago, and how this particular power station was now producing excess capacity which we could be using but are not, because it is Eskom that must facilitate that excess capacity being put on the grid.
We both agreed that this was completely ridiculous and was just one more example of how state-owned monopolies were derailing our growth and development as a nation, due to inefficiencies caused by corruption, ineptitude, indifference and incompetence amongst other reasons.
We both also agreed that it is really stupid that there are people that are still arguing vociferously against privatisation of some state-owned entities, despite their inefficiencies crippling the economy, all because of some “stone age” belief in the innate progressiveness of state ownership as a “revolutionary” principle.
In thinking about all this, I was reminded of Joel Netshitenzhe’s words when he said, “Nationalisation in a context of entrenched corruption, weak corporate governance, patronage rather than meritocratic appointments, and disdain for the bottom-line (if our existing state companies are anything to go by), will not deliver improved outcomes with respect to employment, poverty reduction and reduced inequality.” Substitute the word nationalisation in Netshitenzhe’s quote with the phrase state ownership and the same principle still applies.