South Africa’s CEO Purge

President Cyril Ramaphosa’s mission to fix two of South Africa’s most troubled state companies, power firm Eskom and South African Airways (SAA), could take longer than planned after their chief executives quit within a week of each other. Investors say the CEOs’ resignations could slow the implementation of turnaround plans seen as critical to shoring up confidence in Africa’s most industrialised economy, which has for years struggled to grow and whose last investment-grade credit rating is hanging by a thread.The roles at Eskom and SAA are some of the most challenging in corporate South Africa, with fierce disagreements over how the companies should operate, meaning it will be difficult to find replacement leaders quickly. Eskom is choking under $30.3 billion of debt — equivalent to around 9 percent of South Africa’s 2018 gross domestic product — and this year implemented some of the worst power cuts in several years. SOURCE: REUTERS AFRICA

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