South Africa’s current rampant blackouts have caused the steel and manufacturing industries to lose R6 billion (US$520 million), Reuters reported.
Parastatel power utility Eskom has carried out national rotational load shedding in the last month due to depleting diesel and water reserves and unexpected infrastructure damage.
The current power crisis is having a devastating impact on the economy, and is acting as a major deterrent for foreign investment, The Steel and Engineering Industries Federation of Southern Africa said in a statement.
With no power security in place, there is a chance that investors will no longer see the country as an attractive area of interest. The developing economy is reliant on new investment to drive economic growth and development and this could have a long lasting negative impact on South Africa’s future.
Eskom has announced that the power system is under control and they will not implement load shedding this week. The utility cannot guarantee how long the system will remain stable as reserves are dependent on the total consumption of consumers.
The most recent power cuts are a result of two open-cycle gas turbines undergoing maintenance as well as three coal units which tripped late last week – this follows a myriad of issues at various plants over the past month.
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