So. Africa – World Bank/Grim Forecast and Utility – Deploying Prepaid Meters.So. Africa – Eskom to continue with power cuts in Soweto | eNCA
Installing prepaid meters allow customer to consume what they
can afford. Also, asking landlords to collect utility costs from tenants.
https://www.enca.com/news/eskom-continue-power-cuts-soweto
December 24, 2019
Eskom to continue with power cuts in Soweto
JOHANNESBURG – Eskom said it will continue to cut power supplies to residents who do not pay their electricity bills.
Residents of Soweto collectively owe the power utility a total of R18.2-billion, which is reportedly almost half of the total local municipal debt owed to the electricity utility.
‘Unfortunately, we cannot go on … where we just watch where the residents are just consuming without us collecting the revenue and hence that is why we needed to implement our credit management strategies,” said Eskom’s Client Service Senior Manager Daphne Mokwena.
READ: Eskom refuses to restore power to areas over debt owed
Mokwena said those who don’t pay will be disconnected.
Eskom has also begun converting conventional meters to prepaid meters, allowing residents to manage their electricity use.
“We are saying that if customers are on prepaid then you can actually manage what you are consuming, as per your affordability but unfortunately most customers in Soweto are resisting this”, added Mokwena.
Mokwena says some residents continue to tamper with meters and buy electricity from ‘ghost vendors’.
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https://www.enca.com/business/world-bank-cuts-sas-growth-forecast
January 9, 2020
World Bank cuts SA’s growth forecast
JOHANNESBURG – The outlook for South Africa’s economy is not about to improve, according to the World Bank.
In its latest Global Economic Prospects report, the World Bank cut its economic growth forecast for South Africa to below 1 percent for 2020 and its all thanks to Eskom.
The World Bank now expects the economy to grow by a mere 0.9 percent this year.
This comes as Eskom has announced that Stage 2 load-shedding will continue until Friday morning.
READ: Massive debt wave could crash on developing countries, World Bank warns
The power utility says it lost additional generating capacity overnight.
Eskom’s emergency reserves are also insufficient to meet the demand for electricity during the day.
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https://www.enca.com/business/massive-debt-wave-could-crash-developing-countries-world-bank-warns
December 20, 2019
Massive debt wave could crash on developing countries, World Bank warns
WASHINGTON – A wave of debt in emerging and developing nations has grown faster and larger than in any period of the last five decades and could end with another crisis, the World Bank warned.
And if the wave breaks, it could be more damaging since it would engulf private companies in addition to governments, at a time when economic growth is sluggish, according to a new report that covers four debt surges from 1970-2018.
“The size, speed and breadth of the latest debt wave should concern us all,” World Bank President David Malpass said in a statement.
“Clearly, it’s time for course corrections,” he added.
The World Bank and International Monetary Fund have been sounding the warning about growing global debt for years, but the latest report is even more stark and turned up the volume on its calls for governments to take steps to prevent a debt crisis.
IMF chief Kristalina Georgieva on Thursday said developing nations in Africa especially need to strike the right balance between financing development and a manageable debt level.
– Surging to $188-trillion –
The IMF reported that total global debt rose to $188-trillion at the end of 2018, equivalent to nearly 230 percent of the world’s economy.
The World Bank report highlights the “striking” debt surge in emerging and developing economies, which is the “largest, fastest and most broad-based in EMDEs in the past 50 years.”
After declining during the 2008 global financial crisis, amid very low borrowing costs in just eight years since 2010, debt in these countries climbed to an all-time high of roughly 170 percent of GDP or about $55-trillion.
Much of the growth was incurred by China (equivalent to more than $20-trillion), but Beijing also has become a large lender for low-income countries.
The report warns that the current debt wave “could follow the historical pattern and culminate in financial crises in these economies,” especially if interest rates spike or if there is a sudden global shock.
Better debt management, improved tax collection, flexible exchange rates and tighter fiscal rules to manage spending could help avert a crisis and soften the blow if one occurs, the World Bank said.
“Towering though it may seem, the latest global wave of debt can be managed,” Malpass said.
“But leaders need to recognize the danger and move countries into safer territory in terms of the quality and quantity of investment and debt — sooner rather than later.”
His IMF counterpart, Georgieva, in a blog post on Thursday repeated her concern about the massive increase in commercial borrowing in Africa — accounting for 70 percent of the ballooning of debt.
She urged governments in the region to find a “balanced approach” to managing debt and development.
“Africa is seeking to find the right balance between financing development and safeguarding debt sustainability, between investing in people and upgrading infrastructure, between long-term development objectives and pressing immediate needs,” she said.
