https://www.wsj.com/articles/power-struggle-electricity-outages-hit-south-africa-months-before-election-11550152801
The biggest test to the South African president’s power right now: Can he keep the power on?
Africa’s most-developed economy this week is experiencing its worst blackouts in years, with households, businesses and key infrastructure left without electricity for up to nine hours a day. The power cuts have hobbled the country’s mining sector, paralyzed traffic behind disabled stop lights and forced people to cook dinner outside on paraffin stoves—less than three months ahead of national elections that will determine whether President Cyril Ramaphosa, who ousted his scandal-battered predecessor last year, can win a full term.
At the center of the shortages is South Africa’s state-owned power utility Eskom, which supplies some 90% of the country’s electricity, but has been rattled by years of mismanagement and alleged corruption involving senior management. On Wednesday, the company warned that it was technically insolvent and would go bankrupt by April unless it gets a multibillion-rand government bailout.
On the WaneSouth Africa’s state-owned power utility,Eskom, has aging power plants and suffersfrom technical failures and has struggled touse much of its capacity.
Saddled with some 420 billion rand (around $30 billion) in debt—much of it government guaranteed—Eskom has become Mr. Ramaphosa’s biggest political headache. The company’s failure to generate sufficient electricity is eroding already anemic economic growth, while another bailout would add to the government’s rising debt load.