South Africa: Independent Power Generation Constraints Must Be Removed to Get SA Running Again

opinion

It is difficult to understand why the main limitations to private power generation have not been removed, despite repeated pledges from the government to do so. There is a real danger that while grappling with the immediate crisis, policymakers will shelve the issue indefinitely.

Demand for electricity has plunged with the onset of South Africa's Covid-19 lockdown, removing the threat of load shedding for its three-week duration. It could be several months before the economy is up and running normally again, but it would be a big mistake to forget the power constraints which plagued South Africa in the weeks before the pandemic struck.

When Moody's downgraded SA on 27 March, it pointed out that unreliable electricity supply and its impact on the economy was one of the main reasons for the decision. The rating agency also pointed out that a strategy to stabilise electricity production has failed to materialise and that, as a result, economic growth would remain low for years. Returning to a constrained electricity supply without an adequate government response is the last thing embattled businesses need after Covid-19.

Against this background, it is difficult to understand why the main limitations to private power generation have not...

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.