Blackouts hammer steel sector

JOHANNESBURG - As Eskom struggles to keep the lights on, companies continue to lose revenue.

Steelmaker ArcelorMittal announced it's lost billions to blackouts.

READ: Inflation to cut into steel sector

The country's largest iron producer, Kumba Iron Ore, also expects to record lower sales.

Chris Hattingh from the Centre for Risk Analysis says the long-term effects will be dire.

READ: Restore the power grid | Eskom's dark cloud has silver lining

"We underestimate the long-term effects," he said.

"For an international investor, they expect some sort of return on their investment.

"When we look at big picture stuff in the global context where inflation is high and growth is lower, those international investors, capital markets, those look for avenues maybe where things are operating a little bit better."