1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zhenek [66]
3 years ago
11

Load shedding effects on the people’s lives? In South Africa

Geography
1 answer:
statuscvo [17]3 years ago
5 0

Answer:

Eskom chief operations officer, Jan Oberholzer, publicly stated that the primary reason for load shedding was due to a lack of maintenance and neglect over the preceding twelve years resulting in an unpredictable and unreliable system.

Explanation:

The year has already gotten off to an eventful start, with the South African Reserve Bank (SARB) unexpectedly cutting the repo rate by 25 basis points to 6.25%, while lowering 2020 economic growth projections down from 1.4% to 1.2%.

Of the opinion that this revised growth estimate may still be over-optimistic, Jeff Schultz, senior economist at global bank BNP Paribas South Africa, predicts another tumultuous year for the local economy.

Speaking at a BNP Paribas quarterly economic update event at Melrose Arch in Johannesburg on Monday (10 January), Schultz cited the continued electricity outages as the main reason behind this seemingly pessimistic view.

“Assuming that the first half of 2020 could see a minimum of 15-20 days of Stage 2 load-shedding, we estimate this could shave a further 0.3-0.4pp off growth, which is why we have lowered our already sub-consensus GDP growth forecast to just 0.5% from 0.8%.”

Schultz put the likelihood of a recession at between 30-40%, dependent on the state of power supply management going forward.

While noting that the recent rate cut came earlier than anticipated, Schultz said that another cut in the second half of the year cannot be ruled out.

“We think that there is still room for the SARB to make another 25bp rate cut later on this year, although timing will depend on February’s budget and the Moody’s rating decision.”

On the topic of the upcoming budget, Schultz hopes to see fiscal restraint through lower wage adjustments but also predicts a continued rise in debt ratios on low nominal GDP.

“With the primary balance adjustments likely to fall short of expectations and a weaker nominal GDP growth outlook, we think a decision by Moody to downgrade South Africa’s last remaining investment-grade credit rating is possible.

“It is our view that this downgrade of the sovereign rating will be felt more in economic confidence than in local asset prices,” he added, noting that the downgrade is already relatively well discounted by markets.

“This is not to say that there would not be forced passive selling of SAGBs owing to South Africa’s likely exit from the FTSE World Government Bond Index. However, we believe the net effect is likely to be smaller than the $5-8 billion in potential outflows that the SARB has warned about.”

With all eyes sure to be on government’s plans for South Africa’s ailing state-owned enterprises – especially the restructuring of Eskom and SAA – Schultz believes economic reform could be highly beneficial.

“We expect to see some hope on medium-term growth prospects through progress on institutional reforms and corruption prosecutions.

“However, several events in mid-2020 might contribute to an increase in political noise which might impact the speed of the process,” he said.

You might be interested in
Where was the maya civilization located
mr Goodwill [35]
The Maya civilization was located in South and Central America mostly. It occupied <span>a wide territory that included southeastern Mexico and northern Central America. This area included the entire Yucatán Peninsula and all of the territory now incorporated into the modern countries of Guatemala and Belize, as well as the western portions of Honduras and El Salvador.</span>
7 0
3 years ago
How does the ocean affect the weather and climate?
Rufina [12.5K]
If you live near the ocean, usually the weather is warmer than the inland because the jet stream has warm air coming from the equator and then that's why if you live near the California beaches, it's warmer . It also might being more fair weather to wear you live
6 0
3 years ago
Which river is the longest in the world?
-Dominant- [34]
The Nile river is the longest river in the world, followed by the Amazon river which is the second longest. 
4 0
3 years ago
What's the population of the united states?
raketka [301]
The current population of the United States of America is 325,372,521 as of Thursday, January 12, 2017, based on the latest United Nations estimates.
8 0
3 years ago
What other fields of study might a geographer encounter
yuradex [85]
All 3 sciences, geology, criminology and psychology in human geography, oceanography (if thats a thing), vulcanology
7 0
3 years ago
Read 2 more answers
Other questions:
  • Human impact on one system leads to changes in more of Earth’s systems.<br> True or false?
    7·1 answer
  • Which layer of the earth is the thinnest?
    5·2 answers
  • Mountains produced by tensional stress, like the Teton Range in Wyoming, are called _____.
    13·2 answers
  • Please help me out now​
    13·2 answers
  • The most likely reason today's population is growing in certain areas or countries is because
    11·1 answer
  • In what way does the federal legislative process of passing a bill into law use the system of checks and balances? A. Congress c
    10·2 answers
  • The top of Mount Everest is about 8,850m. what would the approximate air temperature be at that altitude?
    12·1 answer
  • Net migration from urban to rural areas.
    12·1 answer
  • (Plzzz help)
    7·1 answer
  • Please help me, ill mark brainliest
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!