A modern economy cannot be productive without a steady supply of electricity.
The ongoing power cuts in South Africa are expected to result in the shedding of at least 350 000 jobs, despite projections of 3.9% economic growth for 2021.
This is according to a research report by accounting firm PwC, which notes that the return of load shedding in the fourth quarter, after 11 weeks of no power cuts, undermines economic growth.
- Global economic environment is favourable for trade-dependent South Africa, power cuts pose domestic challenges
- Unexpected power station breakdowns, delays in returning to service some other units under maintenance, and the quicker than expected depletion of emergency systems resulted in nearly 15 000MW of capacity being out of action
- This amounts to nearly half of the power utility’s coal-powered fleet
- Load shedding is expected to reduce 2021 GDP growth by three percentage points
- It is expected to cost the country 350 000 in potential jobs
- Mike Schüssler says South Africa has lost well over a million jobs already due to load shedding
- The service industry that probably uses the most electricity is the telecommunications sector – and if users can’t use their cellphone, then those service providers can’t make money
- Manufacturing is also suffering
- Electricity issues have also had a negative impact when it comes to attracting investors, further injuring economic growth
- SA cannot be productive in a modern economy if there’s no electricity