Subscribe to the bi-annual report
  • This field is for validation purposes and should be left unchanged.
Assessing and promoting civil and minority rights in South Africa.

[Source: Bloomberg by Paul Burkhardt & Michael Cohen.]

An electricity-supply crisis is looming in South Africa that could make intermittent outages in the past few months seem trivial by comparison.

Eskom Holdings SOC Ltd., which supplies almost all the nation’s power, will lose more than a quarter of its current generating capacity over the next decade as it shuts aging coal-fired plants. Replacing that output and adding capacity needed to meet rising demand will take years and cost more than 1 trillion rand ($71 billion), according to government estimates. The problem is likely to worsen exponentially after 2030 as more plants reach retirement age.

While Eskom is building two new plants, Medupi and Kusile, they are running years behind schedule and billions of rand over budget, and won’t be enough to plug the supply gap. The utility has limited scope to invest in more projects because it isn’t making enough money to cover its operating costs and service its debt, which had ballooned to 419 billion rand at the end of its last financial year.

Continue reading here.

South Africa at a Glance
57 700 000 (mid 2018 estimate)
4.5% y/y in May 2019 (CPI) & +6.4 y/y in May 2019 (PPI)
-3.2% q/q (1st quarter of 2019)
More information: Click here!