DStv Channel 403 Saturday, 23 November 2024

SARB's Kganyago says power cuts stifling economic growth

JOHANNESBURG - Rolling blackouts are stifling the country's economic progress.

That's been confirmed by Reserve Bank Governor, Lesetja Kganyago.

READ: Eskom implements Stage 4 power cuts until further notice

Eskom implemented Stage 4 power cuts on Tuesday morning.

The utility says this is due to a loss in generating capacity.

WATCH | Eskom signs land lease agreements with IPPs

"A modern economy needs a reliable economy. The bulk of the problems that we have with respect to low growth have to do with constraints to the economy, of which electricity is another," Kganyago said.

"So when we look at the outlook for the South African economy, we then also have to factor in the impact of load-shedding on the economic growth going forward.

"But there is another aspect which worrying which is that, with the load-shedding, what you then have is businesses have to provide for backup solutions."

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