A new report has indicated that the South African power crisis, which has affected the country's platinum mines, might not undermine economic growth as badly as was first thought.

According to the ratings firm Standard & Poor's (S&P's), South Africa might be able to tackle the power crisis without seeing its economic growth negatively undermined.

While the crisis has "dented" the growth forecast, S&P's believe that a history of good conditions in the economy will aid the situation.

Konrad Reuss, Managing Director of the agency, said: "An extended period of sustained buoyant economic activity since the turn of the century will hold the sovereign [state] in good stead to tackle this power crisis head on."

But the report did find that Eskom would be hurt by the situation while the power shortage will be more of a "stress" to other major companies.

Eskom has applied to increase energy prices and Mr Reuss thinks that this could lead to greater energy efficiency being practiced as companies and home owners try to reduce outgoings.

"Such a drop in demand would provide some added breathing space until more capacity comes on line," he predicted.

Meanwhile, Zesco, Zambia's state power utility and Tata Africa Holdings have issued an international tender for contractors to build a $230 million power station.

According to Reuters a new firm called Itezhi-Tezhi Power had been formed and it would oversee the construction.

Inadequate power supplies have also affected precious metals mines in Zambia and power requirements in the African country are expected to increase to 2,500 MW within the next five years.

Source:

'Power shortages a stress rather than a ratings threat' 27/03/08
http://www.engineeringnews.co.za/article.php?a_id=129969

Zambia seeks contractors for $230m power plant, 27/03/08
http://www.engineeringnews.co.za/article.php?a_id=129967

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