South Africa News

Loadshedding overshadows supposed economic growth – Dion George – POLITICS

DA MP says estimated losses for 2022 due to blackouts have scaled up to R950 billion

Losses due to continuous blackouts overshadow any supposed economic growth

9 December 2022

This year is the most intensive loadshedding year to date and the effects of the latest high-level rolling blackouts in South Africa are wreaking havoc on fundamental sectors of the economy.

This week it was announced that South Africa narrowly escaped a technical recession. However, despite economic activity having rebounded slightly (which highlighted an environment of pent-up demand), rolling blackouts make it increasingly difficult for any business sector to up its activity as both large and small businesses in all sectors across the country are experiencing the effects of load-shedding on their performance.

Recent estimates suggest that economic losses for 2022 due to continuous blackouts have scaled up to R 950 billion. With no end to Eskom’s woes in sight, the damage to the South African economy is set to breach R 1 trillion before year end for 2022 alone. This is the inevitable result of the ANC’s approach to management which emphasises the removal of competent people, their replacement with party loyalists, and the pursuit of the extraction of wealth to feed cadre deployment networks.

The South African economy is facing an unprecedented scenario as load shedding not only impacts food security and mobile networks, but entire business sectors and industries. Losses in the manufacturing and finance sectors have both been estimated at more than R 200 billion for this year, with the transport and mining sectors not far behind.

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