Economist warns load shedding one of the biggest risks to South Africa’s growth in 2019

Luckily for most of us, load shedding joined in on the December holidays and took a break. With industry and many businesses shutting down over the festive season, the demand decreased and scheduled disruptions have stayed away.

However, economists are concerned about what might happen when the wheels start turning again.

Speaking to the Sunday Times, Annabel Bishop, chief economist at Investec, raised some concerns around state-owned enterprises (SOEs).

“SOEs remain a key concern, especially Eskom,” she said.

“Given the parlous state of Eskom’s financial position, load shedding could persist into 2019 and if it was as extreme as in early 2008, GDP for Q1 2019 could see growth cut by as much as a third to a half.”

The power utility has been hamstrung by a number of issues in recent…

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