The JSE closed in the red today amidst reports that Eskom would stop the progress of developments such as the Gautrain and infrastructure for the 2010 World Cup. Eskom were however quick to come out and say this would not happen. Eskom said all developments that have already applied and have quotations will be honoured and that the Gautrain and World Cup infrastructure would continue to be developed with no problems from Eskom’s part.

Now it seems like if anyone wants to go ahead with a development requiring more than 100 kVa, they would need to apply for approval first from Eskom and it may take between four and six months for the application to be processed. That could easily be six months of productivity lost!

If all these reports are correct it would be no surprise if the economic growth in South Africa slows down. No wonder the local markets are reacting the way they are as such news could only be detrimental for the economy. Economic growth largely hinges on new developments which will create more money and opportunities for growth. If these developments are slowed down or not allowed to happen, chances of growth are slim.

Everyone, in one way or another is being affected by the current electricity problems in South Africa and the worst is yet to come unless Eskom get their house in order.

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