banner

Sp_apagão
464 Views

Treasury says power constraints getting government attention


South Africa’s National Treasury said on Saturday electricity supply constraints were getting government attention at the highest level after rating agency Fitch said an unstable power supply had led it to cut growth forecasts.

Fitch affirmed its BBB rating but warned that the negative outlook for Africa’s most advanced but ailing economy reflected a range of risk factors. Print Send to Friend .

These included weak GDP growth and a failure to reduce the budget deficit and stabilise the government debt/GDP ratio “that may, individually or collectively, result in a downgrade”.

“Government recognises that the country’s economic growth performance needs to be higher in order to address the country’s challenges,” the treasury department said in statement. “Resolving the energy challenge is a priority”.

South Africa is building three large-scale power stations to reduce chronic electricity shortages that have forced power utility Eskom to impose rolling blackouts to prevent the grid from collapsing.

One of them, Medupi, produced power for the first time earlier this year from one of its six units. Once completed the plant will add nearly 5 000 MW to the country’s total generating capacity of 40 000 MW. Fitch had warned in March that a downgrade of its BBB rating for South Africa — two notches above junk status — was more likely than not.

It cited concerns that South Africa’s economy was running quite large twin budget and current account deficits, leading to rising public and external debt ratios. The treasury department said it would broadly stick to its spending ceiling budget plans of 3.9% of GDP for the 2015/16 fiscal year.

Source: engineeringnews


Book your seat to attend the Sustainable Energy Seminar at Sustainability Week in June


Follow Alive2Green on Social Media

TwitterFacebookLinkedInGoogle +

Recently Published

organic pigs2
»

Organic Pig Production Reduces Antibiotic-Resistant Bacteria

A recent study published in the scientific journal Frontiers in ...

Screen Shot 2017-09-20 at 10.51.39 AM
»

Water scarcity under the spotlight at Water Research Council meeting

Water scarcity in South Africa will be high on the agenda of a ...

Screen Shot 2017-09-20 at 10.17.41 AM
»

Hospitality Marketing Maven Joins Premier Hotels & Resorts

With over 25 years of marketing, public relations and events ...

Plastics SA
»

Record numbers of volunteers participate in 2017 international coastal clean-up day

This past weekend saw the 21st year in which South Africa ...

Screen Shot 2017-09-20 at 9.33.45 AM
»

Nordic Energy Days: Clean and renewable energy vital for the Southern African Power Pool

The Nordic countries Denmark, Finland, Norway and Sweden hosted the ...

Samoa
»

Environment officials talk sustainable tourism in Samoa

Environment officials are in Apia to begin talks starting with a ...

A2g
»

Huge impact of subtle law changes on mining and oil & gas industries

Analysis of proposed change to financial provisioning laws Financial ...

Screen Shot 2017-09-07 at 11.43.12 AM
»

LUX* implements 100% renewable energy production project on Ile des Deux Cocos property

The 20kWp project’s state-of-the-art design and storage solution ...

Screen Shot 2017-09-07 at 11.13.20 AM
»

Langa Residents Turn Trash into Cash with Polyco’s PACKA-CHING Project

In just four days, Langa locals brought 5,2 tonnes of glass,1,9 ...