Eskom losses will impact badly on business: SACCI

Alan Mukoki
Reading Time: 2 minutes

The business community says it is extremely concerned with the situation that Eskom finds itself in. The troubled power utility reported a loss of R20.7 billion, which it attributed to increases in debt servicing and fuel costs.

The South African Chamber of Commerce and Industry (SACCI) says huge losses made by Eskom will impact negatively on business, investor and consumer confidence.

SACCI says it is time that government considers letting go of the embattled utility and let the private sector play a bigger role in energy generation.

Business is concerned that high electricity costs and erratic supply pose a huge risk to the entire economy.

SACCI CEO, Alan Mukoki says up to now, the government has not displayed competence that it can run an organisation of Eskom’s size. He expects business confidence to continue being depressed on the back of the uncertainty surrounding the power utility.

Mukoki say the high cost of electricity also impacts on competitiveness and the ability of business to create employment.

The Steel and Engineering Industries Federation of Southern Africa, SEIFSA, representing some of the intensive energy users, says it too is concerned. The federation says the electricity crisis will have knock on effects for the economy.

Government has roped in South African Institute of Chartered Accountants to help with the restructuring of Eskom.