The situation has worsened in recent times, with widespread outages lasting up to 12 hours a day, leading to massive revenue losses across all sectors. World Bank data reveals that the economy slowed to a mere 0.2% year-on-year in the second quarter of 2022, with projections for 2023 now downgraded to 1.9%, a reduction of 0.2 percentage points relative to earlier forecasts in April.įor the past decade and a half, South Africa has been grappling with a severe power shortage that has threatened to cripple the country’s economy.
Last year alone, there were over 200 days of power rationing, severely impacting the country’s economic growth and stability. According to the central bank, the country is expected to experience a record 250 days of blackout in 2023, representing a historic loss of $12.7 billion and further exacerbating an already dire situation. Governor Lesetja Kganyago has expressed his concern over the impact of load shedding, noting that without it, the country’s GDP growth could have reached a far more respectable 2.3% this year.Īs South Africa’s power crisis deepens, experts warn of an impending economic disaster that could have far-reaching consequences for the country’s future.
Recent estimates from the Reserve Bank suggest that the daily cost of load shedding, a common practice of scheduled power outages, amounts to a staggering $51 million, draining the country’s GDP and undermining its potential for sustained development.ĭespite efforts to address the issue, South Africa’s economy continues to suffer, with the country’s growth rate projected to plummet from 1.1% in 2022 to a mere 0.3% this year. South Africa’s persistent power crisis has taken a significant toll on the country’s economic growth and stability.
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