S.Africa power crisis threatens growth-govt
Mon Jun 9, 2008 3:20pm BST
(Adds Maroga comments, details, background)
By Paul Simao
JOHANNESBURG, June 9 (Reuters) - South Africa's power crisis poses a threat
to economic growth and the government's efforts to battle unemployment, poverty
and other social ills, Deputy President Phumzile Mlambo-Ngcuka said on Monday.
Africa's largest economy has already been hit by the near collapse of the power
grid in January and state-owned utility Eskom's subsequent decision to ration
power indefinitely.
Investors worry key sectors of the economy, such as mining, could be buffeted
by further turmoil if Eskom [ESCJ.UL] fails to increase power supply.
Large gold and platinum mines shut down for five days at the start of the
crisis in January. "If this situation is not addressed, it will call into
question the many goals of socio-economic development that we have committed
ourselves to," Mlambo-Ngcuka told an energy summit in Johannesburg.
~~ USD/ZAR just break 7.90 area (7.9145,0.51%) on this comment from gov.~~
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