Ramaphosa gets a welcome break

President Cyril Ramaphosa, who governs a country beset with problems ranging from indebted state companies to rampant corruption, can head into the weekend with a rare sense of progress.

On Monday, his government announced the appointment of a chief executive officer for Eskom, seen as a key step to rescuing the state power utility staggering under R440 billion of debt. On Thursday, a former state security minister and a political foe was arrested on bribery charges in the biggest demonstration yet that Ramaphosa plans to honor his pledge to end the corruption that marred the era of his predecessor, Jacob Zuma.

Read: Former minister arrested on corruption charge

But the most significant development came Friday when two labour unions, which had led a strike at the struggling national airline, accepted the same offer proffered eight days earlier, a 5.9% increase. That left their members no better off and without a week’s pay. The increase is dependent on South African Airways raising the money.

Read: SAA agrees deal to end eight-day strike

Taking on the unions is key for Ramaphosa’s plans to rescue the economy. They helped him ascend to power, but now stand in the way of his plans to split Eskom into three units and reduce government expenditure.

“It’s a signal in these very difficult circumstances,” said Martin Kingston, chairman of Rothschild & Co.’s South African unit and an SAA board member. “Everyone needs to tighten their belts.”

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