The Economic Effects of the Current Electricity Crisis on South African Business

Looking back historically at the electricity sector in South Africa in the 70s and early 80s, the country had an excess supply of power and this reflected its singular, inward looking focus on self-sufficiency and security in the energy environment.  So by the late 80s, South Africa found itself in the enviable position of having huge excess supplies of electricity, due largely to the lack of demand from the mass population and the withdrawal from the country of certain international industrial concerns during the period of economic sanctions.  However, with the global financial crisis of the late 90s, the country felt the negative impact of the global economic downturn, particularly from East Asia, resulting in a number of job losses in its manufacturing sector as a result of rising interest rates and businesses no longer investing in the market place or creating new jobs.