One cri­sis af­ter an­other

Finweek English Edition - - SIMON SAYS -

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.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.