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<p>In #TheHashtag, Busi Lethole, CNBC Africa&#8217;s social media correspondent, takes a look at the ‘biggest mistake’ people make when starting a business according to Billionaire Mark Cuban,  Eskom implements Load Shedding, and Springbok’s to face Japan at the Rugby World Cup quarter-finals&#8230;.</p>


#TheHashtag: Billionaire Mark Cuban’s lessons for entrepreneurs & SA vs. Japan at #RWC2019


<p>JOHANNESBURG, Oct 16 (Reuters) &#8211; South Africa&#8217;s rand tumbled more than 1% on Wednesday to its softest level in a week after state power utility Eskom said it would implement nationwide blackouts for the first time in more than six months due to capacity shortages.</p>



<p>The rand was 1% weaker at 15.0550 per dollar, its lowest since Oct. 10, as of 0615 GMT.</p>



<p>Eskom said it will cut up to 2,000 megawatts of power from the national grid on Wednesday due to a shortage of generating capacity, starting at 0700 GMT (9 am local time) and up until 2100 GMT.</p>



<p>The comments pushed the rand past the crucial 15.00 mark, with deeper losses likely as the session wears on, traders said.</p>



<p>Struggling state power firm Eskom implemented one of the worst power cuts in several years in February, hurting small businesses without backup power generators and industrial firms that consume large volumes of power.</p>



<p>&#8220;There was an initial knee-jerk reaction to the announcement. And the longer it (blackouts) goes on, the worse it will be for the rand,&#8221; said currency dealer at TreasuryOne Andre Botha.</p>



<p>&#8220;Any improvement (in sentiment) will depend on clarity we get from now on about what is happening. But there&#8217;s definitely negative risk across the board,&#8221; Botha said.</p>



<p>A debilitating round of power cuts in February and March pushed first-quarter economic growth into contraction and raised the likelihood of the country losing its last investment-grade rating.</p>



<p>Bonds also weakened, with the yield on the benchmark government paper due in 2026 up 3.5 basis points to 8.27%. </p>



<p>(Reporting by Mfuneko Toyana, Editing by Sherry Jacob-Phillips)</p>


South Africa’s rand takes a tumble as Eskom plans nationwide power cuts


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s state power utility Eskom urgently needs a turnaround plan as its capital structure is unsustainable, credit ratings agency Moody’s said on Tuesday in a report which sent the rand lower.</p>



<p>“The company’s operational and financial performance has deteriorated, indicating the extent of the challenges facing Eskom in meeting its debt obligations absent government support,” Moody’s said in a note.</p>



<p>Eskom reported a mammoth 20.7 billion rand ($1.39 billion) annual loss a week ago. [nL8N24V5CB]</p>



<p>($1 = 14.9196 rand)</p>



<p>Reporting by Alistair Smout; Editing by Jan Harvey</p>


South Africa’s state power utility Eskom urgently needs turnaround plan – Moody’s

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<p>De Beer Attorneys are holding alleged corrupt Eskom directors at fault as they prepare for a damages claim for individual businesses who have suffered losses during load shedding. They have come out with the names of the directors they plan to take legal action against. Abduraouph Kamaar, Senior Associate at De Beer Attorneys joins CNBC Africa for more.</p>


De Beer Attorneys to go after Eskom directors for load shedding


<p>PRETORIA (Reuters) &#8211; South Africa’s economic growth will shrink by at least 1.1 percentage points in 2019 and there will be up to 125,000 job losses if nationwide electricity blackouts persist throughout the year, the central bank said on Wednesday. </p>



<p>Ailing state utility Eskom switched out the lights across the country in February and March as low coal supplies, a severe cash crunch, and multiple failures at its ageing fleet of power stations throttled supply.</p>



<p>The debt laden state firm began by cutting supply by 1,000 megawatts before ramping up to 4,000 MW, leaving households in the dark and businesses across mining, manufacturing and retail unable to operate.</p>



<p>“Should these interruptions continue throughout 2019, it is likely to reduce growth by 1.1 percentage points,” the Reserve bank said in its Monetary Policy Review publication, the second for the year.</p>



<p>“Under these circumstances, employment is likely to be lower by an estimated 125,000 jobs, with around 48,000 jobs lost to the first shock and 77,000 to the second,” the bank said, referring to the mining and manufacturing sectors.</p>



<p>The review dimmed hopes for the economic rebound promised by President Cyril Ramaphosa and comes less than a month before national elections.</p>



<p>In its February budget the National Treasury forecast gross domestic product (GDP) expanding at 1.5 percent from 0.8 percent growth in 2018. At its policy meeting in March the central bank pushed down its growth forecast to 1.3 percent.</p>



<p>Bets of growth above 1 percent have helped the country cling on to its remaining investment grade credit rating from Moody’s.</p>



<p>Earlier this month the public enterprise minister said the government would help Eskom keep the lights on and resort to so-called stage 1 loadshedding – 1,000 MW of rolling blackouts – as a last resort.</p>



<p>But Eskom, burdened by debt of around 450 billion rand, said it needed more money in addition to the 69 billion rand bailout granted by the government, to keep the lights on.</p>



<p>That raised fears it may drag down growth and prompt Moody’s to downgrade the country’s sovereign rating to junk.</p>



<p>First quarter GDP data is only due in June, but indicators of private sector activity, business confidence, mining and manufacturing have already shown signs of a negative impact of the power cuts.</p>



<p>Reporting by Mfuneko Toyana; Editing by Susan Fenton and Emelia Sithole-Matarise</p>


Why South Africa’s GDP growth is likely to shrink by 1.1 percentage points in 2019

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<p>Eskom has repeatedly made headlines for its inability to sustain its obligations to perform resulting in major losses for the private sector. De Beer’s law firm is calling on businesses to band together to take legal action against South Africa’s failing power utility. Joining CNBC Africa to for more on the proposed class actions is Elaine Bergenthuin, Partner at De Beer Attorneys.</p>


De Beer Attorneys: Why we decided to sue Eskom

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<p>CNBC Africa’s Lubablo Mashiqana spoke to Eskom CEO Phakamani Hadebe about addressing challenges at the power utility.</p>


Phakamani Hadebe on tackling municipal debt to Eskom

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<p>Pravin Gordhan, Public Enterprises minister says that Eskom has a well-constructed plan to get the country through the winter. According to media reports the Medupi are expected to contribute to power output in a more significant way.  CNBC Africa’s Lubablo Mashiqana spoke to the minister at Lethabo Power Station.</p>


Eskom: Pravin Gordhan moves to allay fears of a dark winter

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<p>Peter Attard Montalto, Head of Capital Markets Research, Intellidex joins CNBC Africa to look at Moody’s ratings on South Africa and MPC meeting.</p>


Intellidex reviews SA MPC meeting, Moody’s ratings expectations

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<p>Hulamin is reporting record high sales for its manufacturer, rolled products, which delivered a 6 per cent jump in sales. The Pietermaritzburg-based aluminium supplier Hulamin did, however see a staggering 290 per cent decline in earnings before interest and taxation. Joining CNBC Africa for more is Hulamin CEO, Richard Jacob.</p>


The cost of load-shedding for Hulamin

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<p>Public Enterprises minister Pravin Gordhan spoke to CNBC Africa’s Lubabalo Mashiqana about the power crisis at Eskom.</p>


Pravin Gordhan gives update on the #Eskom crisis

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<p>The markets are looking very dim on the fourth day of severe power cuts across South Africa that is costing the economy millions in business at a time when it can ill afford it. Meanwhile the pain of the power cuts are being felt in business. CNBC Africa’s Fifi Peters filed this report.</p>


The cost of Eskom’s power outages

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<p>Court Action by Coal Transporters Forum against Eskom took place in Pretoria today. The CTF will ask the high court to block Eskom from obtaining power from independent power producers. CNBC Africa reporter Lubabalo Mashiqana spoke to NUMSA General Secretary, Irvin Jim.</p>


Judgement reserved in case to halt Eskom’s contracts to IPPs

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<p>Although Eskom has announced that they will be no load shedding for today, if load shedding is sustained it will result in higher costs in food production. CNBC Africa is joined by Dawie Maree, Head of Information and Marketing at FNB Agriculture.</p>


The cost of load shedding on food production

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<p>As South Africa continues battling with load shedding, businesses are also feeling the pinch. CNBC Africa went out to Soweto to hear about the plight of small businesses owners and brought you this story.</p>


Small businesses battle with continuous load shedding

<p>By Chris Bishop.</p>
<p>Business and households were given a pre-Christmas shock with a frank disclosure of the ruin of Africa’s biggest power generator amid claims of sabotage, corruption and decay where those who try to fix it are swept aside or forced out of their jobs. The only crumb of comfort is that the government promises to shake up South Africa’s power generator Eskom and has cancelled their Christmas holidays for its senior executives so they can tour the ageing power stations of the country to find out what is wrong.</p>
<p>“We have reshuffles in cabinet we are going to be reshuffles here as well,” says Pravin Gordhan, the public enterprises minister.</p>
<p>Gordhan and Eskom chairman Jabu Mabuza were called back from a road show for an emergency press conference at Eskom’s Megawatt Park in Sandton, Johannesburg. They painted a bleak picture of the failing national grid, supplied by Eskom, that has left many businesses and homes in the dark over the last few months. The grid of 47,000 MW is running on a mere 29,000 MW because of maintenance and breakdowns in the ageing power stations on the country, most of which were built in the 1970s. Eskom didn’t even know where the next break will be, he said.</p>
<p>“For business, we want to ensure by the time you get back to work in January we have a better situation,” says Gordhan.</p>
<p>But Gordhan acknowledged it was likely to be a grim fight against years of corruption and decay that has seen the pride of Africa’s power generation reduced to a load shedding shell.</p>
<p>“There has been declining production, the growing need for repairs, the lack of attention, we are not sure yet whether there is an undermining of the system, as well, let’s call it sabotage,” he says.</p>
<p>“Some of the problems can be ascribed to the age of the plant, but from about 2010 the investment in maintaining, repairing and big scale repairs were not done adequately. Enough money was not put into big repairs and mid-term repairs.”<br />
“ Often things were fixed with a very lousy old band aid supposed to last a week that comes unstuck in a few days, then you haven’t fixed it .We are looking at contactors not doing what they were supposed to do.”</p>
<p>Experts in Eskom who tried to fix the mess were either swept aside or forced to leave, Gordhan said.</p>
<p>The minister even admitted that his department was also a step behind what was going on at Eskom. It had merely on energy expert.</p>
<p>“The public was told we have a world class operation, but in the meantime all the malfeasance and mismanagment has gone on,” says Gordhan.</p>
<p>Eskom hopes to report back within ten days and plans to set up a team of experts to assess the damage to the power generation system.</p>


Lights out, game on- No Christmas of rest and turkey for the bosses in a dingy tale of decay

<p>JOHANNESBURG (Reuters) &#8211; South Africa faces more power cuts, electricity utility Eskom warned on Monday as it sought to prevent the collapse of its power grid in a test for President Cyril Ramaphosa’s reforms.</p>
<p>Eskom implemented a fifth day of controlled power cuts on Monday, putting more strain on an economy already mired in recession only months before a national election.</p>
<p>“The entire week could be severely constrained if we are unable to replenish the diesel and water reserves, and reduce the high unplanned outages,” Eskom spokesman Khulu Phasiwe said.</p>
<p>Eskom, which is battling a severe financial crisis, coal shortages and breakdowns of its power plants, said it would cut up to 2,000 megawatts of power from the grid on Monday.</p>
<p>The utility, which last week called for a bailout or debt relief, began the controlled cuts, known as load-shedding, on Thursday as demand for power outstripped available capacity.</p>
<p>“Eskom teams are working hard to salvage the situation but the process is going to be hard, long and costly,” Phasiwe said.</p>
<p>Ramaphosa has made reforming Eskom a priority, but he has been hampered by fiscal constraints in a blow to his plan to woo investors who can help grow the economy ahead of an election likely to be held in May next year. nL8N1X61GL]</p>
<p>“Eskom as an institution and its ability to provide stable power supply is the single biggest risk to @CyrilRamaphosa’s investment drive and the South Africa fiscus,” Isaah Mhlanga, executive chief economist at Alexander Forbes Investments said on Twitter.</p>
<p>BNP Paribas South Africa senior economist Jeff Schultz said prolonged power cuts would likely hurt economic growth in the first quarter of 2019, although a slowdown in manufacturing over the Christmas period will buy Eskom some time.</p>
<p>“But come mid-January, if we are still facing load-shedding, that is when it is going to be a much more pressing issue for the economy,” Schultz said.</p>
<p>South Africa entered recession in the second quarter for the first time since 2009. Third-quarter gross domestic product numbers are due out on Tuesday, with analysts polled by Reuters predicting quarter-on-quarter GDP growth of 1.6 percent.</p>
<p>($1 = 13.6396 rand)</p>
<p>Editing by James Macharia and Alexander Smith</p>


load shedding

#TheHashtag: Billionaire Mark Cuban’s lessons for entrepreneurs & SA vs. Japan at #RWC2019

South Africa’s rand takes a tumble as Eskom plans nationwide power cuts

South Africa’s state power utility Eskom urgently needs turnaround plan – Moody’s

De Beer Attorneys to go after Eskom directors for load shedding

Why South Africa’s GDP growth is likely to shrink by 1.1 percentage points in 2019

De Beer Attorneys: Why we decided to sue Eskom

Phakamani Hadebe on tackling municipal debt to Eskom

Eskom: Pravin Gordhan moves to allay fears of a dark winter

Intellidex reviews SA MPC meeting, Moody’s ratings expectations

The cost of load-shedding for Hulamin

Pravin Gordhan gives update on the #Eskom crisis

The cost of Eskom’s power outages

Judgement reserved in case to halt Eskom’s contracts to IPPs

The cost of load shedding on food production

Small businesses battle with continuous load shedding

Lights out, game on- No Christmas of rest and turkey for the bosses in a dingy tale of decay

More power cuts for South Africa could raise Ramaphosa reform risk

News Tips

Advertise With Us

load shedding

#TheHashtag: Billionaire Mark Cuban’s lessons for entrepreneurs & SA vs. Japan at #RWC2019

South Africa’s rand takes a tumble as Eskom plans nationwide power cuts

South Africa’s state power utility Eskom urgently needs turnaround plan – Moody’s

De Beer Attorneys to go after Eskom directors for load shedding

Why South Africa’s GDP growth is likely to shrink by 1.1 percentage points in 2019

De Beer Attorneys: Why we decided to sue Eskom

Phakamani Hadebe on tackling municipal debt to Eskom

Eskom: Pravin Gordhan moves to allay fears of a dark winter

Intellidex reviews SA MPC meeting, Moody’s ratings expectations

The cost of load-shedding for Hulamin

Pravin Gordhan gives update on the #Eskom crisis

The cost of Eskom’s power outages

Judgement reserved in case to halt Eskom’s contracts to IPPs

The cost of load shedding on food production

Small businesses battle with continuous load shedding

Lights out, game on- No Christmas of rest and turkey for the bosses in a dingy tale of decay

More power cuts for South Africa could raise Ramaphosa reform risk

News Tips

Advertise With Us

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