South Africa’s power crisis poses a threat to economic growth and the government’s efforts to reduce unemployment and poverty, Deputy President Phumzile Mlambo-Ngcuka said on Monday.
”If this situation is not addressed, it will call into question the many goals of socio-economic development that we have committed ourselves to,” Mlambo-Ngcuka told an energy summit in Johannesburg.
State-owned power utility Eskom has been battling to contain an electricity crisis brought on by years of underspending in generation capacity.
The crisis has rattled investors, who worry the government will veer to the left after a decade of pro-business policies. There are also fears power cuts could blight the 2010 Soccer World Cup in South Africa.
Eskom, which produces about 95% of the country’s electricity, said the power crisis would go on for years.
Mines, including the world’s biggest platinum and key gold mines, were forced to halt output for five days in January due to electricity shortages and are still not receiving full power.
Mlambo-Ngcuka said the country’s economic growth was also a factor in the power shortages.
”While our socio-economic progress has to be praised, our economic growth has accelerated [power] demand,” she said, adding that the government should not shirk its commitment to provide affordable electricity to the poor while moving to solve the power crisis.
Economic growth in South Africa is slowing. GDP growth fell to a six-and-a-half-year year low of 2,1% quarter on quarter in the first three months of 2008.
Eskom has announced plans to boost its current 37 761MW capacity by almost 15 000MW, spending R1,3-trillion by 2025.
Meanwhile, theft of electricity cables has played a role in South Africa’s power crisis, a senior government official said on Monday, urging communities to protect the country’s electricity networks.
Mbhazima Shilowa, Premier of Gauteng province, told an energy summit that criminals stealing cables had been responsible for triggering recent blackouts in the Johannesburg area.
”There is no way that members of the community don’t see them [criminals], don’t know,” Shilowa said. — Reuters