Moneyweb reports that the ongoing power cuts in SA are expected to result in the shedding of at least 350,000 jobs, despite projections of 3.9% economic growth for 2021.

This is according to a research report by accounting firm PwC, which notes that the return of load shedding in the fourth quarter, after 11 weeks of no power cuts, undermines economic growth. The report adds that although the global economic environment is favourable for trade-dependent South Africa, domestic challenges such as the ongoing power cuts continue to cloud scenarios for the remainder of the year. According to chief economist at economists.co.za, Mike Schüssler, SA has lost well over a million jobs already due to loadshedding. He pointed out: “Think of all the businesses that didn’t start up and businesses that have closed down, the mines that haven’t expanded because there’s no power, and the extra refinery that we were going to have in Coega that didn’t come. There [are also] thousands of small farms that didn’t make it and had to consolidate. That meant job losses.” Schüssler noted that the electricity issues have also had a negative impact in respect of attracting investors, so further injuring economic growth. He concluded that it was “quite clear” that the country had lost millions of jobs and “trillions of rands over these 14 years” because of the electricity situation.

• Read the full original of the report in the above regard by Palesa Mofokeng at Moneyweb

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