South Africa makes progress in tackling energy crisis

JOHANNESBURG, Oct. 14 (Xinhua) — South Africa has experienced more than 200 days of constant electricity supply, marking a significant milestone in the country’s efforts to address power challenges, said Minister of Electricity and Energy Kgosientsho Ramokgopa Monday.
Ramokgopa told a media briefing in Free State Province that South Africa has not completely resolved energy problems. He, however, stated that work is being done to ensure load shedding, or power cuts, is a thing of the past. “We will do everything possible to end load shedding. At the right time, we will say it’s fully behind us,” said Ramokgopa.
The minister acknowledged the negative impact sustained load shedding has had on the economy, businesses and daily life, describing the energy crisis of the last two years as an “albatross on the economy.”
“Load shedding has been albatross on the economy and logistics interrupting businesses and being responsible for the bloodbath unemployment,” he said.
Eskom, the state-owned power utility in South Africa, on Sunday marked 200 consecutive days of not implementing load shedding. Its energy availability factor has significantly improved, surpassing the 66 percent mark, which was a significant move for the power utility to meet the country’s energy demand. It also planned to add over 2,500 megawatts to the grid.
Ramokgopa noted that with sustained energy availability, South Africa’s recent experience bodes well for the gross domestic product (GDP).
A recent survey conducted by the Bureau for Economic Research at Stellenbosch University showed that with energy stability, South Africa could achieve up to 3 percent GDP growth in the next 18 months to 24 months.
South African President Cyril Ramaphosa also expressed optimism about the country’s economic growth, sharing the minister’s positive outlook. In his weekly newsletter published Monday, Ramaphosa noted rising confidence among businesses and local and international investors in the country’s economic growth prospects.
“Improved investment sentiment will benefit our country’s fiscus. A stronger economic outlook will improve South Africa’s credit rating, which in turn will facilitate greater access to global capital markets and lower our borrowing costs,” he noted.
Improving the energy crisis has also had a significant impact on citizens and businesses and unlocked investments, added Ramaphosa. ■