Power woes curbing growth - Zuma

President Jacob Zuma. Picture: Mike Hutchings

President Jacob Zuma. Picture: Mike Hutchings

Published Aug 11, 2015

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Pretoria - The current electricity shortages being experienced across South Africa was hindering economic growth, President Jacob Zuma said on Tuesday.

“Since the implementation of the five-point plan in December 2014, substantial progress has been made in resolving the energy challenge. The operation and maintenance practices at Eskom continue to improve to ensure that the power plants are appropriately maintained and provide the electricity in their capacity,” Zuma told reporters at the Union Buildings in Pretoria during a media briefing.

“Eskom has signed short-term power agreements that bring additional supply of electricity to cater for the shortfall due to maintenance and to match demand during peak periods.

A further 800 megawatts will be added to the grid through co-generation. A saving of 450 megawatts has been realised through the energy efficiency programmes. This is a result of South Africans working together in order to alleviate the impact of the electricity challenge,” he said.

Zuma, accompanied by Minister in the Presidency Jeff Radebe, Finance Minister Nhlanhla Nene and Rural Development Minister Gugile Nkwinti, said despite the global sluggish economic growth, South Africa’s economy was expected to rise over the next three years.

“We expect the electricity constraints, which is our major obstacle… our estimate is that electricity shortages are currently costing the economy close to one percentage point in economic growth,” Zuma said.

Zuma was updating the media on progress made in areas relating to economic growth and job creation since his State of the Nation Address in February this year.

ANA

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