Ramaphosa defends Eskom split into three entities as to reduce risk to economy

South Africa's President Cyril Ramaphosa said on Thursday that his government's plan to split struggling state power firm Eskom into three entities would reduce risks to the economy by enabling better regulatory oversight and increasing competition.

"Restructuring will reduce the risk of a massive Eskom that at times has been termed 'too big to fail', placing the government in a position where all our eggs are in one basket," Ramaphosa said in a speech to parliament.

"It is not a path to privatisation," he added, promising that a financial support package for Eskom would be accompanied by a far-reaching turnaround plan and that officials would hold consultations with trade unions.