President Cyril Ramaphosa of South Africa

Electricity remains biggest risk to S’Africa’s economic outlook: Report

*Irregular power supply weighs on South Africa’s productivity

*Eskom Holdings suspends managers of two of its biggest generating plants as the country suffers record electricity outages

Isola Moses | ConsumerConnect

As it is the case in several other African countries including Nigeria, a report has indicated that the single biggest risk to South Africa’s economic outlook remains the availability of electricity to consumers.

Bloomberg Economics reports that it is a binding constraint that continues to hold back productivity and investment growth in the South African country’s economy in recent times.

Without it, the country’s growth potential will remain stuck at around 1%, even if progress is made in other areas.

Meanwhile, ConsumerConnect gathered that Eskom has suspended plant managers as South Africa suffers power cuts

Eskom Holdings SOC Limited, South Africa’s state-owned power company, has stated that it suspended the managers of two of its biggest generating plants as the country suffers record electricity outages.

It was learnt Eskom recently suspended the managers of the Kendal and Tutuka plants and asked the acting managers of the Kriel and Duvha plants to return to their original positions.

The company said: “This action was taken because of sustained poor performance by these plants, which require investigation pending disciplinary action.”

Together the coal-fired plants account for about 14,400 megawatts of generating capacity, or about a third of Eskom’s total potential output.

Earlier reported that three plant managers had been suspended, citing people familiar with the situation.

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