Gov’t: No energy crisis in South Africa

CAPE TOWN – South Africa’s government denied on Tuesday that it was facing a national energy crisis and refuted reports that recent power outages will harm investment and cut economic growth.

“There is not a national energy crisis, there is a tight reserve margin which we are addressing,” Public Enterprises Minister Alec Erwin told parliament.

The country’s main tourist city Cape Town has suffered weeks of debilitating blackouts following problems at nearby nuclear plant Koeberg, causing traffic chaos and forcing businesses to close doors. Industrial hub Johannesburg has also experienced intermittent power cuts.

The business community has estimated the blackouts have cost the economy hundreds of millions of rands and could jeopardise the government’s goal of lifting annual growth to at least 6% by 2010.

Fin24