South Africa’s Power-Cut Economic Losses Drop Dramatically by 83%

South Africa’s power-cut losses decreased by 83% last year, as reported by the Council for Scientific and Industrial Research. The economic impact dropped from 2.9 trillion rand in 2024 to 481 billion rand in 2025. Improvements were made by Eskom, but intermittent outages persist and challenges remain in the energy system.

South Africa has experienced a remarkable 83% reduction in the economic impact of power cuts, as reported by the Council for Scientific and Industrial Research. For the previous year, the economic cost due to load shedding amounted to 481 billion rand ($26.7 billion), significantly down from 2.9 trillion rand in 2024, a year that witnessed unprecedented blackouts. Last year, the gross domestic product reached 4.7 trillion rand, reflecting a 0.6% growth compared to 2023.

This reduction in losses can be attributed to increased maintenance efforts by Eskom Holdings SOC Ltd., which improved the reliability of its coal-fired power stations. Despite this progress, intermittent power outages have resumed this year, indicating that the situation remains precarious. Eskom has also escalated the use of auxiliary diesel turbines to manage peak demand effectively.

Electricity Minister Kgosientsho Ramokgopa cautioned that the electricity supply system still faces vulnerabilities due to delayed procurement of additional generating capacity. Moreover, the nation’s only nuclear power station, once deemed highly reliable, has faced operational issues similar to other plants. Eskom is striving to enhance its fleet performance, which achieved a 60% energy availability factor last year—the highest since 2021. With a 3% decline in demand in 2024, the utility has been better able to maintain electricity supply, which is expected to continue trending downward.

In summary, South Africa has successfully reduced the economic losses attributed to power outages by 83%, reflecting improvements in the power supply’s reliability. Continued efforts by Eskom, although faced with challenges, exhibit a commitment to enhancing electricity generation. The government acknowledges the systemic vulnerabilities that persist, highlighting the importance of timely procurement for new generation capacity. Overall, the nation’s economic outlook appears cautiously optimistic amid these developments.

Original Source: financialpost.com