Loadshedding sow doubts on rescue plan, South African growth
JOHANNESBURG – South Africa’s cash-strapped state power company imposed a second day of controlled blackouts, jeopardising a recovery in the continent’s most-industrialized economy as investors await a government plan to restructure the utility.
The nation is still struggling from outages in the first quarter that contributed to the biggest economic contraction in a decade. Estimates of the blackouts’ toll range from 1 billion rand ($67 million) to 5 billion rand a day. They could also cost South Africa its last investment-grade credit rating from Moody’s Investors Service, which is due to deliver its next assessment on Nov. 1.
Eskom Holdings SOC Ltd., which provides about 95% of South Africa’s electricity and is seen as the biggest threat to the economy, cut 2,000 megawatts from the grid Thursday due to unplanned breakdowns at its plants, it said in a statement. The blackouts could last for a week, Eskom Chief Operating Officer Jan Oberholzer told Talk Radio 702.
Source: iol.co.za
