Southern Africa: 'Let's Hope Moody's Cuts Us Some Slack' - Davies

(file photo)

Addressing the Cape Town Press Club on Tuesday, Department of Trade and Industry Minister Rob Davies was forthright about the damage which Eskom is inflicting on the South African economy. With a rating review from Moody's imminent, Davies is hoping for mercy.

"It's pretty obvious that if we are having load shedding, it is going to have a dampening effect on our economy," said Trade and Industry Minister Rob Davies on Tuesday.

"It's going to mean that production is not happening at the scale it was meant to be happening at."

Davies was addressing the Cape Town Press Club on the future of the South African economy, where he noted that one of the biggest challenges is the ongoing under-performance of Eskom.

Load shedding, however, is only one of the problems that need to be addressed. Rising electricity prices have also presented a challenge to businesses and "definitely had a negative impact on manufacturing".

An example of the effect of load shedding, said Davies, happened on his visit to one of the best-performing factories in the world, in Atlantis in the Western Cape. The Hisense factory there, which produces televisions and fridges, lost power during the visit. The uncertainty this...

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