Breaking Up an African Power Monopoly

Welcome to Next Africa, a daily newsletter on where the continent stands now — and where it’s headed. Sign up here. In today’s edition, we look at:

Eskom’s plans for a competitive electricity marketAnother person infected with Ebola in transport-hub KenyaA big week for South Africa’s economic prospects

Eskom’s Brave New World

South Africa’s electricity behemoth is coming to terms with its less-powerful future.

For years, managers at Eskom raised concerns about President Cyril Ramaphosa’s plan to break out its transmission unit so that private generators can compete. Its leaders warned of the risks to the firm and investors, and even the wider economy, pitting them against the government.

It appears now that the company is backing down, and almost embracing the possibilities.

In an interview with Bloomberg Television, CEO Dan Marokane conceded the entity regarded the market overhaul as irreversible. Instead, he mapped out his plans for a diversified business he thinks will offset the anticipated loss of market share.

“We have really abandoned the notion of owning everything or doing everything by ourselves,” Marokane says.

Eskom will look for new ways to make money — luring data centers and Bitcoin miners and other heavy industrial users who can hoover up the three-to-five gigawatts of overcapacity the company says it produces.

It’s a remarkable turnaround from the decade of load shedding, during which Eskom was unable to generate enough electricity to supply the country’s needs, stifling the economy and leaving angry households in the dark.

Marokane accepts that power outages and municipal decay have also driven consumers to invest in alternative sources, particularly rooftop solar and battery storage.

He’s also looking to bulk exports into the booming mining regions of Zambia and the Democratic Republic of Congo, and to move into “green electrons” to meet customers’ needs.

Ironically, it appears the prospect of losing its monopoly has jolted the more than 100-year-old firm to seek to earn back its dominance.

What Everyone’s Reading

Kenya confirmed an eighth Ebola case, extending an outbreak that began when an infected traveler returned from Congo through Uganda. The flareup is being closely watched because Kenya is a major transport hub, with capital Nairobi’s airport connecting East Africa with destinations across the continent and beyond. Separately, more than $700 million in funding for the response to the disease in Congo remains unaccounted for.

South Africa stands a good chance of regaining its investment-grade credit rating within two years, according to Investec Wealth & Investment International. The fund manager sees a more than 50% chance the country will exit junk by 2028, propelled by economic reforms and fiscal discipline that have shifted sentiment after years of being shunned by investors.

President Abdel-Fattah El-Sisi says Egypt stands ready to defend Saudi Arabia as it comes under attack from Yemen’s Houthis and called on parliament to convene an emergency session to authorize such action if it becomes necessary. The nation of about 110 million people has avoided military involvement in the ongoing Iran war and the campaign being waged by the Houthis.

Cameroon’s dollar bond sank for a fourth trading session after Fitch Ratings downgraded its debt, citing heightened political risks and mounting financing pressures in the central African nation. Its eurobonds were among the worst performers in emerging markets on Monday.

Morocco appointed the head of its football federation as finance minister, as the 2030 FIFA World Cup co-host faces the challenge of narrowing fiscal leeway and pressing demand for social spending. Fouzi Lekjaa, the ex-budget minister, was appointed to head the economy, finance and public-efficiency portfolio.

Former South African President Jacob Zuma has been discharged from the hospital, his party says. Zuma, 84, was admitted to a facility in the eastern town of Pietermaritzburg on Oct. 6, raising questions about the extent to which he would be able to campaign ahead of Nov. 4 municipal elections.

Kenyan Remittances Dented by New US Tax, Fallout from Iran WarImpala Bonuses Under Scrutiny Over Worker Deaths

Thank you for your responses to our weekly Next Africa Quiz and congratulations to Taofik Adeosun, who was first to correctly identify South Africa as the country that’s home to the world’s biggest platinum mine.

Behind the Numbers

Much of the focus will be in South Africa this week.

Annual inflation likely picked up to 4.6% in September, driven by higher fuel costs, writes Bloomberg Economics’ Yvonne Mhango. Fuel prices climbed after two months of declines, which is likely to push transport inflation back above 10%.

Finance Minister Enoch Godongwana will also deliver the medium-term budget policy statement on Wednesday. He’s expected to affirm that fiscal consolidation is on track, helped by strong tax revenue after higher precious-metals prices boosted corporate receipts.

That should help narrow the deficit further, locking in a primary surplus and keeping debt on track to fall as a share of GDP.

Last Word

You Can See Everything, a genre-bending film offering an intimate portrait of Theranos founder Elizabeth Holmes, notched the second-best debut showing ever for a documentary. Its opening weekend trails only that of Michael Moore’s Fahrenheit 9/11 in 2004, and it boasts a near-perfect 99% score with critics on Rotten Tomatoes. The film chronicles the final days for the disgraced founder of the blood-testing startup before going to prison, as well as the aftermath.

We’ll be back in your inbox with another edition tomorrow. Send any feedback to nextafrica@bloomberg.net.

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