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These numbers show how much Eskom hurt SA’s economy

The jobless number is a sign of how weak the economy is.

South Africa’s power cuts hurt the economy in the fourth quarter, and three data points this week show just how bad it was.

Production by South African manufacturers fell the most in five-and-a-half years in December, the national statistics office said on Tuesday. And for the first time in at least 11 years, the unemployment rate didn’t fall in the fourth quarter.

Eskom, generator of about 95% of the nation’s electricity, implemented the widest blackouts yet in December to prevent the grid from collapsing. That weighed on business confidence, adding to the negative sentiment about the utility’s finances that’s already made investors nervous.

“We are now seeing how the Eskom problems are starting to show up in the official data,” said Jacques Nel, an economist at NKC African Economics in Paarl, near Cape Town.

The unemployment rate stayed at the highest in at least a decade. The trade and manufacturing sectors shed the most jobs in the fourth quarter, a period during which retailers often employ extra temporary staff in anticipation of a pickup in Christmas-related sales. Retail sales unexpectedly fell in December, data from the statistics agency showed Wednesday.

Read: Unemployment rate unmoved

The jobless number is “a sign of how weak the economy is: business confidence is bad, consumer confidence is in negative territory and growth remains weak,” said Christie Viljoen, an economist at PwC. The decline in trade jobs “shouldn’t have been the case in the fourth quarter with Black Friday and Christmas. It shows that retailers were preparing for a disappointing festive season, which is concerning.”

The bad news will probably continue. A report due on Thursday may show mining production dropped 3.5% in the last month of the year, the most since the previous December, according to the median estimate of five economists in a separate survey.

What Bloomberg’s Economist Says

“It is an Eskom story, but also one of weak domestic demand. That miners and manufacturers were forced to shut their operations earlier than expected certainly contributed to the decline. However, the sharp decline in motor vehicles underscores the weak demand environment.”

–Boingotlo Gasealahwe, Africa Economist

© 2020 Bloomberg L.P.
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Here’s an idea, how about a class action suit against Eskom’s former board members? Since none of them are likely to do jail time, the least the SA taxpayer could do is sue them out of existence.

If the Zondo commission is anything to go by, you’re wasting your time

Cadre to Cadre, Comrade to Comrade, Socialist to Socialist, it’s an elite group who conspire together, lie together, steal together, and ultimately Govern together

You have zero chance, albeit a good suggestion though

That class action would have to be against the ANC, considering the fact that the ANC is EKSDOM’s sole shareholder

I saw Rhodesia go through the same series of events. SA is in its death throes.

Well our man is under the impression that local companies should invest everything they have into SA. He thinks that’s the problem. He even thinks FDI is a good idea.

With ESKOM in its current state and the ANC in charge of policy you would be laughed at in the real world.

This is the difference between a “shareholder” that is a beneficiary and one that is an investor.

The one just keep making ………. decisions as its costing him nothing.

The employed have organised themselves against the unemployed.

It’s the ANC that hurt the economy

It is policies of the government, Escom is just a fraction of the problem, causing job losses. EWC, BBBEE, NHI, canceled bilateral agreements in 2013 (which started the capital emigration = follow Steinhoff, Christo Wiese’s losses) and you can certainly see why job losses will accelerate in 2020. The chickens (bad policies) are coming home to roost. Good luck with long term job creation.

This is an ANC story, Eskom is merely a symptom of the communist disease. The ANC and its backers, the Tripartite Alliance, are the root cause of this spiral of rising unemployment. We are witnessing the relentless process whereby a democratic system enables the average voter to turn the economy into a manifestation of his mindset. This is exactly what democracy is supposed to do. Things work pretty much according to plan here in sunny SA. The problem is – nobody likes the results. They should have chosen a different system.

What a beautiful introduction to the upcoming SONA by dear Squirrel. All brought to us by his wonderful party and the comrades in the criminal cabal running the country. There are none so blind ….

Unfortunately the ANC understood ‘economic freedom’ to mean a country free of (or without) an economy. I’m not really surprised.

The Dunning-Kruger effect has a grip on this bunch of freeloaders.Look up Dunning Kruger it will explain a lot. Venezuela the benchmark the ANC looks at,after nationalizing oil and bankrupting the country has given it back to the Capitalist swine Exxon to run it again to save their economy. Dunno how long the Comrade, Cadre, communist brightsparks we have will take to follow suit.

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