One crisis after another
Results from ARB Holdings (weak) and Group Five (ver y weak) both s i g na l l e d t he s a me i s s ue. ARB commented on the reasons behind its poor results as a “lack of reticulation spend by Eskom and the paucity of major infrastructure projects”, while Group Five said the “South African market remains generally subdued with poor visibility on the timing of larger public sector contract awards”. In short, government is not making good on its promise of a massive infrastructure spend. Further, Eskom is seemingly slowing work on reticulation; this is the network of high voltage cables crisscrossing the country and delivering electricity. Now, sure, it’s experiencing a cash crunch of note, but neglecting reticulation just means that when the power shortage crisis is over, the next crisis could well be its ability to deliver the power generated.