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Thursday, May 23, 2019

Mabuza responsible for 2 million jobless

My letter in the Cape Times on Monday 20th May 2019

Newspapers are emblazoned with a report from Jabu Mabuza, Eskom's chairperson, and chairperson of Business Leadership South Africa, where he says "South Africa is facing 'unemployment time bomb'".

Eskom believes that it can employ everyone and pay them very high salaries!

Eskom and its construction company subcontractors have forgotten what electricity is for! It isn't for the number of people who can build power stations and how long they can be employed for.

Electricity is for the economy. For job growth.

If Medupi and Kusile Coal Power Stations were complete, as they should already be, then 2 million more people would have work.

Mabuza can blame himself. He, and his colleagues, got Eskom and South Africa into this mess. He must solve the problem, or resign.

I am also confused by the employment statistics referred to in Mabuza articles. If 27% of people are unemployed, which is 6.2 million people, then full employment equals 23 million people.

But there are 55 million people in South Africa. How come 32 million people are unemployable. I get that there are under 18s and over 65s and people who cannot work in the equation, but 32 million of them, which means that only 42% of people are employable?

If Medupi and Kusile were operational, then they would directly contribute 2 million jobs, and if Eskom could get its general efficiency from 60% to 92% where it should be, then perhaps another million people would have work.

And companies would be able to plan, knowing that there is security of supply, and would possibly be able to employ more people, so let's say this is now 4 million people.

Take 4 million from 6.2 million and you get 2.2 million and unemployment is then 9.6%, which is a much more manageable.

So Mabuza is directly responsible for at least 2 million people being unemployed and directly responsible for unemployment of 27% instead of 9.6%.

DAVID LIPSCHITZ, Milnerton

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