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South Africa's Central Bank Flags Concerns About Energy Crisis

SARB

SARB Governor Lesetja Kganyago points to the adverse impact of load-shedding on economic growth, noting that power outages are now expected to shave 2 percentage points off GDP growth this year compared with the previous estimate of 0.6 percentage point.

  • Kganyago also noted that while fiscal risk eased over the last year, weaker commodity prices and rising SOE financing needs could reverse that positive outcome.
  • The situation of the cash-strapped electricity utility Eskom remains at the centre stage when it comes to SOE financing problems.
  • In case you missed it, the Governor's press conference is currently under way and can be watched here.

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