Weddings in the dark, disgusted tourists and business owners leaving the country are some of the effects Eskom’s power failures are having, according to postings on a website dedicated to the problem.
In the first 48 hours of operation since being set up by trade union Solidarity, www.eskomstories.co.za has received about 2 000 letters about people’s experiences of and losses resulting from power failures.
”We have received a wide range of stories, all of which emphasise our point that power cuts not only affect big business, but that they play havoc with the lives of all South Africans who depend on electricity for a livelihood,” said Solidarity spokesperson Jaco Kleynhans on Tuesday.
Tuesday’s top story was from a C Gordon.
”My sister got married last weekend to a Swedish man whom she met in London a few years ago. The first hour of their wedding reception was in the dark, as the [highly reputable] venue did not have back-up generators.
”A large number of guests were not from South Africa, and were extremely anxious and shocked at the lack of a simple thing like electricity.
”Then, last night, Monday 21st January 2008, about 15 of the groom’s family members went up Table Mountain to enjoy the spectacular view and sunset. They were stuck on the mountain until 12.45am.
”That terrifying experience has turned them off South Africa for good. I can only imagine how unpleasant and daunting it must be to be stuck on top of a mountain in a foreign country for so many hours … It is such a pity!!”
Entrepreneur Art Goosen recounts how he is relocating to Amsterdam after being forced to run his R1,5-million-a-month business on a generator for the past two months.
”When I leave, 17 people with their families will be without an income, never mind the other industries that I purchase from.
”Somehow I cannot fathom out why these people in government and their parastatals cannot get their priorities in order.”
He exported to the European Union and his London branch, but with his shipments being late he was subjected to severe penalties.
”Why should I struggle with all this? Crime is sky high, there is no power and no one cares.”
A Bronwynne Meyer said that Eskom’s efforts to bring back retired engineers to help it out of its ”inadequacy” was ”disgusting”.
Counting the cost
Economists estimate the cost to the economy has run into hundreds of millions of rands, adding to the woes brought on by the steep falls in financial markets triggered by growing fears of a US recession.
”The potential impact is a lot greater than the international [market] turbulence if you find that South Africa has run into a wall in terms of how business can invest and how the economy can grow,” said Nicholas Kennedy, head of emerging markets at 4CAST in London.
”With the backdrop of the rand weakening, the global growth slowing and the dependence South Africa has on portfolio financing, anything that can potentially dent economic growth is very negative for local equities and the current account financing,” he said.
The country’s current account deficit stood at 8,1% of gross domestic product in the third quarter of 2007 and is seen remaining wide as the country spends billions of dollars on imports to develope its infrastructure.
Flagging capacity
Eskom plans to spend R300-billion ($43,27-billion) to boost flagging power capacity over the next five years and has warned it might be forced to ration the energy source in the meantime.
The state utility said this week it was importing electricity from Mozambique, Zambia and the Democratic Republic of Congo and was also working at bringing back into operation three power stations shut down in the 1980s.
”In so far as the economy is concerned these power cuts make South Africa less attractive for investment,” said Jac Laubscher, group economist at Sanlam.
”Portfolio investment is very sensitive to economic growth as that drives company earnings growth. We have managed to attract meaningful inflows in the past four years … but if that falls back then on balance it implies that it will be difficult to finance the current account deficit,” he said. – Sapa, Reuters