Dark times: Economist explains why load shedding has come at a bad time for SA
The effects of load shedding are being felt by South Africans from all walks of life. Lullu Krugel, a senior economist for PriceWaterCoopers, breaks down the long-term effects of power cuts.
CAPE TOWN – Load shedding has been implemented at one of the worst times as South Africa is due for a review by ratings agency Moody's in a week.
PriceWaterCoopers economist Lullu Krugel said they hoped the rating agency would consider all factors before downgrading the country.
“I’m really worried that they would downgrade South Africa. If not next week, then definitely in the near future.”
At the same time, the rand has taken a beating but has since stabilised since power cuts were rolled out. Krugel explained there were various things, including international factors, that impacted the rand.
“The rand has stabilised a bit. The currency is impacted by a range of other factors. There’s a lot of noise in international markets as well. In the UK they’re dealing with their own problems. We’re dealing with load shedding and they’ve got Brexit.”
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