The view from Marubini Raphulu’s office is pretty impressive. A few floors below, Sandton’s Rivonia road pulses with traffic. Neighbouring new-age, glass-panelled offices soar and sweep. There’s even a smattering of jacaranda, now in bloom, just beyond in the moneyed suburbs.
Behold the Sandton bubble. Nothing, though, pops the illusion of developed economy nirvana, such as the Sandton central business district skyline, quite like the debilitating energy crisis in which South Africa currently finds itself.
The lights go off, the traffic snarls, and hundreds of diesel-burning generators rattle into motion. More seriously, investors second-guess plans to invest while the rating agencies that influence the sovereign cost of capital turn the dimmer down on the country’s creditworthiness.
For Raphulu, CEO of Hulisani – a JSElisted investment company focused in the secondary energy market – energy security is an economic and a human question; of those primal needs the country can’t afford to ignore.
“Energy is a primary need,” he says in an interview with finweek. “And when you’re looking at energy, you’re looking at water and you’re looking at food: these are the things people feel passionately about, and rightly so,” he says.
This is why government has long sought to protect its control over the energy market, only grudgingly allowing the private sector to participate. “The concern is ... the private sector’s driven solely by motive: the profit motive, and it will double prices,” says Raphulu.
But the Eskom debacle, which has heaped unsustainable financial pressure on the power utility, has brought government to a place where it can no longer keep the private sector leashed.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.