Declaring load shedding a state of disaster won’t make difference to investors – economist
Efficient Group economist Dawie Roodt says government possibly declaring the electricity
crisis a national state of disaster won't make any difference to international
investors.
ANC President Cyril Ramaphosa said on Monday evening that there is a broad consensus in the party that a state of disaster is needed as South Africa continues to battle power cuts.
Roodt says foreign investors want solutions to the energy crisis.
"What foreigners and investors genuinely care about is whether we have electricity or we don't. So with the current government in charge, I'm afraid with the state of disaster or not, we probably not going to have sufficient electricity and that also means foreigners and investors are not going to be interested in investing in South Africa."
Roodt says the government's transparency on the electricity issue is a welcome move, as well as the shift to more renewable energy.
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But he believes the plan is insufficient.
"This government has all sorts of plans, for example, renewable energy, and what's going to happen in the next couple of years but there is a huge lack in that plan because there isn't a financial plan.
"We don't know who's going to pay for all of this and how it's going to be paid for it. We also don't know with Eskom, in terms of its cost base, and many other aspects as well."
