• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

South African economy contracts on intensifying power outages

2 years ago
in Business, Economy, Energy, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
61
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

South African economy contracts on intensifying power outages

South Africa’s economy shrank more than expected in the fourth quarter, when the state-owned power utility intensified rolling blackouts that continue to put a dampener on output.

Gross domestic product contracted 1.3% in the three months through December, compared with upwardly revised growth of 1.8% in the previous quarter, Statistics South Africa said Tuesday in a report released in the capital, Pretoria. That’s the biggest contraction since the third quarter of 2021, when deadly riots, looting and arson disrupted supply chains, industrial output and demand for manufactured goods.

The median of 12 economists’ estimates in a Bloomberg survey was for a 0.4% slump. The rand extended a decline, weakening 0.5% to 18.3378 per dollar by 11:51 a.m. in Johannesburg, while yields on benchmark 10-year government bonds retreated from a session high to trade little changed at 10.68% and South Africa’s main stock index erased most of a modest gain.

Eskom Holdings SOC Ltd. subjected the country to power cuts, known locally as loadshedding, on all but three days in the fourth quarter. The company, which produces almost all of South Africa’s electricity, has struggled to meet demand since 2008, and has imposed severe outages every day this year to protect the grid from collapse.

Sustained blackouts are seen as the most significant risk to economic growth.

Economists in a separate Bloomberg survey predict a contraction in gross domestic product in the three months through March, meaning the economy may already be in recession.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

The electricity crisis is costing the country as much as 899 million rand ($49 million) per day and will shave 2 percentage points off output growth in 2023, according to South African Reserve Bank estimates. It sees the economy expanding by 0.3% this year, well below the National Treasury’s growth estimate of 0.9%.

Economic growth slowed to 2% in 2022, from 4.9% a year earlier, Statistics South Africa data showed.

Electricity Minister

President Cyril Ramaphosa named Kgosientsho Ramokgopa as the minister responsible for overseeing the government’s response to the energy crisis in a cabinet revamp late Monday.

The blackouts are likely to continue for at least two more years as Eskom overhauls its electricity-generating fleet. It has repeatedly said an additional 4,000 to 6,000 megawatts of electricity generating capacity are needed to end outages.

The blackouts weighed on fixed investment spending in the final quarter of 2022, with private sector companies wary to commit large sums of money to domestic projects. Gross fixed capital formation, a measure of investment, rose 1.3%.

Household consumption expenditure, which accounts for about two-thirds of GDP, grew 0.9% in the fourth quarter. Consumer spending is likely to be affected by rising food and fuel costs, loadshedding price pressures and interest rates that have returned to pre-virus levels.

Overall GDP expanded 0.9% year-on-year in three months through December, Statistics South Africa said.

Tags: power outagesSouth AfricaSouth African economy contracts on intensifying power outages
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.