An update to our post yesterday on South Africa’s Power Outages.
Is it really as bad in South Africa as our correspondent wrote yesterday? We have no idea, but promise to report back first-hand if we end up going later this month.
One reader says we didn’t tell the whole story.
On the stuff you printed in today’s daily reckoning, where did you get that utter bull—- story on South Africa from?? I have never seen such utter emotional diatribe concerning the South African economy. If you are going to circulate such trash at least try and counter it with a bit of realism. Agreed, there are power and security issues and some highly paid management at Eskom did stuff it up, but — it’s not like this Markets down.
The fact of the matter is – Eskom have not planned for growth for 10 -20 years. South African economy is buoyant and continues to grow at an alarming rate. Demand for power now outstrips supply causing frequent power outages – simple economics. Many of the mining operations (refer Randgold commentary in last weeks Bloomberg editorials) have actually developed their own power plants and operations remain unaffected (which is the case in all Australian mines)
OPPORTUNITY – Invest and build more power plants, contributing to the grid. There is also a Kudu gas power project in Namibia which plans to be a significant contributor to Africa’s power needs, once fully operational.
As for the crap mentioned on weather and water – never has been an issue. As for the roads, this is Africa – buy a Landover!
Fair enough. There is opportunity in any crisis. It takes capital, though. And right now, the global infrastructure business is running full tilt. The waiting list is long. That’s good for firms like Worley Parsons (ASX:WOR), though.
Markets and Money