Eskom delivers a further two-year job-shedding delay at both Medupi and Kusile
12 August 2015
In yesterday’s presentation by Eskom on its Integrated Annual Results, it emerged that the completion dates for the new power stations at Medupi and Kusile have once again been delayed – this time by a further two years (see here).
The completion of Medupi has been revised from 2017 to 2019, with Kusile revised from 2019 to 2021.
Current delays, and the resulting power cuts, have had devastating effects on our economy, which will barely grow at 2% this year, a far cry from the 5% aimed for by government.
The DA will seek urgent clarity from the Minister of Public Enterprises, Lynne Brown, on whether these delays will result in further load-shedding, and the extent to which any plans have been put in place to ensure that this does not result in the stunting of growth and job creation across the country.
The Minister needs to come out of hiding and tell South Africa whether a further two years of job-shedding is on the cards. The continued secrecy, as evidenced in the Portfolio Committee on Energy yesterday, is a cause of great concern, and cannot be continued. South Africans deserve to know the truth.
I will also be writing to Deputy President, Cyril Ramaphosa, who chairs government’s "war room", requesting he disclose what steps it will be taking to mitigate these delays.
To date, the solutions and impact from what has to be the quietest “war room” ever assembled, have been negligible at best. Greater action is required.
Without competitive economic growth, no new jobs are created for the 35% of South Africans who cannot find work.
A look at the dismal performance of South Africa’s energy-reliant manufacturing sector clearly illustrates the far-reaching effect of our power crisis.
Yesterday StatsSA data revealed that seasonally adjusted manufacturing production declined by 1.2% in the second quarter of 2015, following a decline in the first quarter of 0.5%.
Lower production due to power constraints has led to jobs losses within the sector. Between April and June this year, the manufacturing sector alone shed over 23 000 jobs, according to StatsSA’s Q2 Quarterly Labour Force Survey.
As one delay after another is announced, unemployment continues to surge, leaving more and more South Africans trapped in poverty. This cannot continue any longer.
The DA believes that the opportunity to find a job brings with it dignity, independence, a sense of self-worth and freedom. The current energy crisis has caused economic growth to grind to a half, leaving unemployed South Africans very little hope of finding work.
Statement issued by Natasha Mazzone MP, DA Shadow Minister of Public Enterprises, August 12 2015
