Eskom is being celebrated as though the crisis is over. But the truth is far less comforting: Eskom’s apparent turnaround is not proof of recovery. It is proof that a failing monopoly can still survive while the country around it continues to pay the price.
Join Nicholas Woode-Smith, Zakhele Mthembu and Ayanda Zulu on the Rational Standard Podcast as they unpack the myth of Eskom’s recovery, the reality behind its apparent success, and why South Africans should be deeply sceptical of claims that the power utility has turned the corner.
While loadshedding may have eased and Eskom may be presenting signs of improvement, the deeper structural problems remain exactly where they have always been. Eskom is still a state-backed monopoly. It still operates without meaningful market discipline. It still depends on a distorted system that rewards political control rather than efficiency, competition and service to the public.
At the heart of the issue is a basic reality: Eskom’s apparent success does not mean South Africa has a healthy electricity system. A monopoly can extract more money, raise tariffs and protect its own position while the broader economy suffers. That is not recovery. That is a monopolist surviving at the expense of households, businesses and long-term growth.
In this episode, we examine why Eskom’s so-called turnaround should not be mistaken for real reform, why state monopolies are structurally incapable of delivering abundance, and why South Africa’s energy future depends on competition, decentralisation and privatisation rather than renewed faith in a broken institution.
We also discuss the deeper political and economic problem: South Africa keeps treating Eskom’s temporary improvement as proof that the model works, when in reality the crisis is built into the model itself.
Is Eskom actually recovering, or is South Africa once again being asked to celebrate a failing monopoly for becoming slightly less disastrous?