The City of Cape Town is in talks with Eskom to take over the supply of electricity across the metro.
Author: Prinesha Naidoo
Eskom will have received close to half a trillion rand in state support since it started imposing debilitating blackouts in 2008.
Business sentiment declined to a two-year low in the first quarter as severe power outages and dilapidated logistics networks hobbled economic activity.
South Africa’s economy shrank more than expected in the fourth quarter, when Eskom intensified rolling blackouts.
Eskom will receive R254-billion in debt relief over the next three years, provided it partially privatises the country’s electricity transmission network and coal-fired power plants.
Investors in Eskom are on high alert for finance minister Enoch Godongwana’s plan to reorganise its mountain of debt.
South Africa could face protests similar to those that toppled governments in Tunisia and Egypt in 2011, the head of a leading business lobby group warned.
Self-generation of electricity by businesses and households is likely to reduce rolling blackouts without compromising Eskom’s business model, a top economist said.
South Africa has had 100 consecutive days of rolling blackouts, the longest stretch yet, with more to come as its electricity crisis deepens.
South Africa’s electricity crisis is costing the economy as much as R899-million/day, according to central bank estimates.