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South Africa’s Electricity Minister, Dr Kgosientsho Ramakgopa, has emphasized that the ongoing power outages are severely affecting the country’s economy.
Ramakgopa stated that the power utility spends around R30 billion on diesel to maintain the power supply, and the government is collaborating with Eskom on alternative power generation methods.
During a virtual media briefing on Friday, he announced that 2000 megawatts are expected to be added to the grid by the end of the year. He said:
<blockquote>
The point we are making is that there has to be some degree of urgency. We can see some of these projects that they have announced are only connecting end of the financial year, but we need to move with speed and address the issues that constitute an emergency, so that we are able to protect the South African economy.
</blockquote>
During his visit to vehicle manufacturers in Nelson Mandela Bay Metro, Ramokgopa emphasized the importance of preserving jobs and electricity in the automotive industry for its long-term sustainability.
Ramokgopa noted that the stop-and-start power outages are causing workers to lose up to 20% of their weekly wages. Volkswagen has taken steps to address this issue by installing PV and aggressively rolling out digital PV, investing about R70 million to convert the car park to PV. They are also adjusting their production schedule to maximize output.
The power crisis affecting Southern Africa, including South Africa and Zimbabwe, has resulted in <a href="https://news.pindula.co.zw/2023/03/17/zimbabwe-power-outages-to-ease-from-20-march-zesa/">power cuts</a> due to a shortage of electricity supply. These power cuts have significant impacts on daily life, businesses, and the economy in these countries.
<h2><a href="https://www.pindula.co.zw/">More Pindua News</a></h2>

Pindula News

South Africa's Electricity Minister Ramakgopa Says Power Outages Severely Affecting The Economy

Zimbabwe National Chamber of Commerce (ZNCC) president Mike Kamungeremu said the country needs to quickly focus on its own power generation, as power shortages in South Africa threaten local industry.
Over the past few weeks, South Africa’s power utility, Eskom, reported that several coal-powered generation units had broken down owing to old age and poor maintenance.
There are fears that power blackouts in South Africa will result in:
<blockquote>
1). reduced power supply to Zimbabwe. Eskom used to sell up to 400MW of electricity per month to Zimbabwe
2). a delay in delivery of imports from SA by local industry.,
3). a rise in electricity prices in the region as SA will look beyond its borders to secure electricity for its industry.
</blockquote>
Kamungeremu told NewsDay Business that Zimbabwe has other options but should now focus on ensuring that its power generators can produce enough power for the whole nation. He said on Eskom’s power blackouts:
<blockquote>
It could have some effect since we import power from them but I don’t want to read much into that. We have other options like Mozambique and Zambia but our real focus must actually be on our own power generating infrastructure.
We have been informed that Hwange 7 and 8 are nearing completion and that’s sweet news to our ears. We would rather look forward to the 600 megawatts expected from those plants than worrying about power cuts in South Africa.
</blockquote>
Zimbabwe has a power deficit of between 1 000MW and 1 600MW and as a result, has been importing US$17 million worth of power monthly to meet the local electricity generation shortfall.
Shortages of foreign currency limited imports. Last year, ZESA spent US$225 million on power imports.
<h2>What’s being done:</h2>
The government is upgrading and adding new generation units to the power plants at the Kariba and Hwange power stations. 
Kariba’s two generating units that are being constructed have the capacity to generate 300MW of power while Hwange will see two more units being added with a combined capacity of 600MW.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

ZNCC President Says Zimbabwe Should Focus On Own Power Generating Infrastructure

Zimbabwean industrialists have said <a href="https://zero.pindula.co.zw/eff-calls-for-the-immediate-firing-of-eskom-board-ceo-and-coo/">power cuts in South Africa</a> will have a negative impact on the Zimbabwean industry.
A Chamber of Mines of Zimbabwe (CoMZ) executive said South Africa’s power crisis had emerged as the worst blow against the country’s ambition to build a US$12 billion mining economy.
He said industrial capacity utilisation rates projected at over 60% this year were under threat as firms will cut production. <a href="https://www.newsday.co.zw/theindependent/local-news/article/200000894/sa-blackouts-bleed-zim-industry">The Independent</a> cites the CoMZ official as saying:
<blockquote>
Production will be disrupted if no imports are available to augment power shortfalls.
Now that South Africa has power shortages, their ability to export power to countries like Zimbabwe will be diminished. South Africa will most certainly augment their power by sourcing from the region.
This will put pressure or competition on other alternative power suppliers in the region, pushing up the tariff because South Africa is a big country. Their power deficits are far bigger than ours.
We will end up importing power at a higher tariff from the region and our plans to expand production will be equally affected.
</blockquote>
Zimbabwe imports about 150 megawatts (MW) of power from South Africa to augment the subdued output from its ageing plants and other imports from at least three Southern African neighbours.
Last year, ZESA spent US$225 million on power imports from regional utilities, including in South Africa, according to official data.
But there have been cutbacks since South African utility Eskom announced drastic reductions in generation of up to 2 400MW.
ESKOM announced last week that it will roll out stages 3 and or 4 this week as the power crisis deepens.
On the domestic front, the past five months have been disastrous for Zimbabwe with blackouts lasting about 12 hours a day.
There is still no hope for a solution in the near future after Finance minister Mthuli Ncube told reporters last week Monday that further cuts may be announced in November as he takes into consideration emerging economic dynamics.
On Saturday 24 September 2022, the local power utility, ZESA announced <a href="https://news.pindula.co.zw/2022/09/25/zesa-announces-increased-nationwide-load-shedding-2/">increased load-shedding</a> citing technical challenges at the countries’ power generators.
Authorities, however, hope that blackouts would be curtailed once the first of the two new generating units at the Hwange is brought on line in November. Unit 7 is expected to pump 300MW into the grid.
But Christopher Mugaga, chief executive officer at the Zimbabwe National Chamber of Commerce (ZNCC), said elevated blackout levels were “spill-over effects” of problems confronting South Africa. Mugaga said:
<blockquote>
It is compromising the quantity of power to Zimbabwe. And even if Hwange 7 and 8 are brought on line, we will still feel the impact of power shortages in South Africa because this will have an impact on the cost of importing power from the entire region. Zimbabwe will pay more, we remain vulnerable.
</blockquote>
Confederation of Zimbabwe Industries (CZ) president Kurai Matsheza said the importation of finished or processed goods may be curtailed and spur Zimbabwe manufacturers. 
Matsheza’s remarks were echoed by Oswell Binha, chairperson at CEO Africa Roundtable, who said since South Africa is Zimbabwe’s biggest trading partner, all inputs from there will be delayed.
Economist Chenayi Mutambasere also echoed the sentiments above.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

"Zimbabwe Industry Will Be Greatly Affected By Power Cuts In South Africa" - Industrialists

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