November 20, 2023 07:30 GMT
S&P Keeps S. Africa's Rating & Outlook, Ramokgopa Calls Grid Performance Disappointing
- S&P affirmed South Africa's credit rating at BB- with a stable outlook. The agency said that the nation's debt servicing costs will increase more than expected, but "private-sector investment in power generation and renewables (...) will support the strengthening of real GDP growth to average 1.6% over 2024-2026". Still, economic growth will remain constrained by logistical bottlenecks and energy shortages.
- Electricity Minister Kgosientsho Ramokgopa said that the performance of South Africa's power grid has been disappointing due to more frequent unexpected failures of generating units. The official flagged a failure of the Medupi unit, which is a "big unit and much younger compared to units at various power stations," as an area of concern.
- President Cyril Ramaphosa suggested that the process of giving Electricity Minister Kgosientsho Ramokgopa more powers "is being straightened out," while Mineral Resource and Energy Minister Gwede Mantashe said that the decision to allow Ramokgopa to direct Eskom board and executives is correct.
- Eskom is implementing Stage 2 loadshedding this morning and will move to Stage 3 in the evening until tomorrow morning. Thereafter, the utility will alternate Stage 1 and Stage 3 power cuts.