"South Africa: Power cuts reduce size of economy by one-fifth"

" South Africa: Power cuts reduce size of economy by one-fifth \r\n\r\nBlackouts have reduced the potential size of South Africa\u2019s economy by almost a fifth since they started being imposed around 2008, according to an energy specialist at Africa\u2019s biggest fund manager.\r\n\r\nOutages can be expected every week this year and if the inadequate electricity generation situation isn\u2019t addressed the prospects for economic growth will be dismal, Lungile Mashele, sector specialist for energy and infrastructure at the Public Investment Corp., told a conference in Johannesburg on Thursday.\r\n\r\nState power utility Eskom Holdings SOC Ltd. has imposed rotational blackouts on more than 200 days in 2022 and almost every day this year because its old and poorly maintained plants can\u2019t keep pace with demand. The central bank has estimated that the energy crisis will shave 2 percentage points off growth this year.\r\n\r\nMashele, whose organization manages 2.55 trillion rand ($140 billion), said outages are affecting everything from the timing of surgeries and the slaughtering of chickens to mining production volumes.\r\n\r\n\u201cif we had focused on our problems in 2008\u201d the situation be a lot better today, she said. \u201cNo power, no electricity \u2013 everything shuts down.\u201d\r\n\r\nOther current and potential impacts of the crisis that Mashele laid out in her presentation include:\r\n \r\n \t Marginal underground precious metal mines may close, leading to lower export earnings and job losses. \r\n \t The telecommunication network quality and availability has been affected. Vodacom Group Ltd. has spent more than 2 billion rand on batteries, while MTN Group Ltd. has deployed more than 2,000 generators and uses over 450,000 liters of diesel a month. \r\n \t Outages are leading to sewage spills. \r\n \t Insurance claims due to the blackouts increased 250% over the last year. \r\n \r\nThe International Monetary Fund on Wednesday said it has reduced its economic growth forecast for South African for this year to 0.1% from 1.2%, largely because of the outages.\r\n\r\n\u201cWe really are in a crisis from a growth perspective,\u201d Annabel Bishop, chief economist at Investec Bank Ltd., said at the same conference"

"South Africa: Power cuts reduce size of economy by one-fifth"

Debt Accumulation: Seth Terkper urges Government to prioritize debt repayment system for fiscal stabilityAMP

BHP considering improved proposal for Anglo American after bid rejectedAMP

Kenya’s Ruto lauds Zimbabwe’s ZiG as boost to economic prospectsAMP