The Implications of the South African Energy Crisis for Growth

The energy crisis will impact multiple businesses across South Africa as well as the country's economic prospects. Low-cheating impacts the sovereigns' credit profile first and foremost through the economy. The electricity regulator decision to allow for 18.4% increase in electricity prices effective since last April is likely to exacerbate the population's already high level of frustration over poor access to public services. There has been several initiatives launched by the government to cope with the energy crisis, starting with the Eskom debt relief.