Faizel Patel, Radio Islam – 11-12-2019
The Bureau for Economic Research at the University of Stellenbosch says persistent load shedding has a severe impact on mines and small businesses as the country comes to grips with the deepening electricity crisis.
South Africa’s already dire economic situation has deepened following Eskom’s sudden announcement on Monday night of an unheard of Stage 6 load-shedding schedule.
Some economists believe the record high rolling blackouts could raise the risk of a second recession in as many years.
The Minerals Council of South Africa, which represents 90% of the companies in SA’s industry, confirmed to Fin24 that all of its member mines had been alerted by Eskom to reduce their loads by 20%.
Senior economist Hugo Pienaar says Eskom asking the mines to reduce their power loads is not unprecedented.
“So the mines have said anything above stage four, they can’t take the risk of sending people 2km down into the earth because of safety issues.”
Pienaar says it’s critical for the government hasten bidding rounds for independent power producers or private sector participants to provide power generation so overtime the country becomes less reliant on Eskom’s coal powered stations.
Listen to the interview with Hugo Pienaar
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