Africa's Biggest Economy on the Verge of Collapse


Posted May 1, 2015 by kjprlogins

Its sounds like scene out of I am Legend – but this is not fiction but the daily truth.

 
With daily load shedding, a word not known in the “western world”, now happening at least once day has many economist on the edge of their seats. Can Africa survive an energy apocalypse?

Load shedding’s real meaning is that the Para state electricity provider in South Africa, ESKOM, are forced to shut down parts of the country between 2 to 8 hours on any given day to ensure a balancing act for other regions energy needs.

Think of mines without power, hospitals without air cons – This is the daily obstacles the South African economy faces every day.


What are the implications of this massive set back to the 27th biggest economy in the world?

1. Massive outflow of foreign investment due to a loss in confidence from major foreign role players.
2. Consumer sentiment decreasing by the week.
3. A national resentment towards the government.

South Africa has enjoyed a steady 5% growth of over the last 21 years of democracy, but with the latest wave of xenophobia violence this growth has fallen to less than 2% ( as predicted by the World Bank )

A sentiment of hopelessness is starting to show its face with High inflation, huge unemployment rates and a crime rate that not even CSI Miami will believe.

But on the Brightside :

South Africa is blessed with 2 things :

Huge national optimism for a better life even in this massive energy crisis…
and abundant sun all year round which makes it one of the preferred destinations to invest in renewable alternative energy.

This favorable environment has increased the calls for a bigger investment in alternative energy such as wind and solar energy.

Source – Power Planet(http://www.powerplanet.co.za/blog/top-ten-tips-to-reduce-your-electricity-bill/)
Tel : +27 87 231 0120
[email protected]

By sharing this article you will individually help put pressure on our South African government to invest in alternative green energy make Africa an example for the world again.
-- END ---
Share Facebook Twitter
Print Friendly and PDF DisclaimerReport Abuse
Contact Email [email protected]
Issued By Media Relation
Country United States
Categories Business
Tags Economy on the Verge of Collapse , Africa Economy on the Verge of Collapse
Last Updated May 1, 2015