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Assessing and promoting civil and minority rights in South Africa.

[Source: Moody’s.]

  • South African municipalities are heavily dependent on surpluses from the supply of electricity;
  • Municipalities have limited revenue flexibility to counteract pressures.

Electricity supply disruption in South Africa has prompted a number of large power users (LPUs) to find alternative energy sources away from the national grid, a development that impacts sub-sovereigns that rely on LPUs for electricity revenues and surpluses, Moody’s Investors Service said in a report today.

The cities of Tshwane, Ekurhuleni and Johannesburg, which have the highest reliance on LPUs for their electricity revenue, would therefore be most affected by an increase in the number of LPUs going off grid.

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South Africa at a Glance
58 780 000 (mid 2019 estimate)
4% y/y in July 2019 (CPI) & +4.9 y/y in July 2019 (PPI)
3.1% q/q (2nd quarter of 2019)
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