South Africa Unbundles Eskom Transmission Grid

South Africa is moving forward with the unbundling of its state-owned power utility, Eskom, to create a fully independent state-owned transmission entity. President Cyril Ramaphosa confirmed these plans, which are seen as a crucial reform to address years of rolling power outages, ageing infrastructure, and weak finances that have hobbled the nation's economy. The new entity will own and operate grid assets and the electricity market, aiming to attract private investment and build a more modern and reliable electricity system. This decision follows earlier proposals, including one from Electricity Minister Kgosientsho Ramokgopa, which suggested keeping transmission assets as an Eskom subsidiary. The International Monetary Fund has also urged South Africa to accelerate electricity reforms, highlighting Eskom's financial constraints and the need for private sector involvement. The reform is expected to mobilize significant private investment in renewable energy and transmission infrastructure.