Heavy rain in South Africa’s capital, the neighboring main financial hub of Johannesburg and in the east of the country may further damage an economy weakened by labor strikes, high unemployment and power outages.
South Africa’s state power company was “let down” by contractors including Alstom SA and Hitachi Power Africa, whose errors helped delay the startup of Africa’s biggest power plant for more than two years, according to the utility’s former finance director, Paul O’Flaherty.
South Africa appointed Brian Dames to head state utility Eskom Holdings Ltd., filling an eight- month leadership void as the company struggles to resolve a funding crisis that threatens to cut power to homes and mines.
South Africa’s main electricity provider is running out of capacity and now needs to find 191 billion rand ($19 billion) to fill a funding gap to avert a repeat of blackouts that closed mines and factories in 2008.
Eskom Holdings SOC Ltd., supplier of 95 percent of South Africa’s power, said it has begun scaling back coal purchases as it takes plants offline for maintenance during the summer months when electricity demand wanes.
Eskom Holdings SOC Ltd. said Chief Executive Officer Brian Dames resigned as the supplier of more than 95 percent of South Africa’s power’s profit fell 3.2 percent amid higher production costs and constrained supply.
Eskom Holdings Ltd. is encouraged by the demand for its $1.75 billion bond sale, the first dollar- denominated notes sold by the South African power utility, and will take the success “forward” as it assesses future funding, Chief Executive Officer Brian Dames said.