Power cuts to hit South Africa GDP

Mulugeta Desalegn, an owner of a convenience store, picks an item for a customer as he holds a candle, in Senaone, Soweto, South Africa March 18, 2019. REUTERS

LONDON: Severe planned power cuts at South African state-run utility Eskom are expected to shave 0.3 percentage points off first-quarter GDP growth, Goldman Sachs said on Thursday.

The continent’s most industrialised economy has suffered from some of the worst power cuts in several years, presenting President Cyril Ramaphosa with a major challenge two months before an election at which he will try to reverse a decline in voter support for the African National Congress (ANC).