South Africa: Central Bank Plans for Improbable But Not Impossible Power Grid Collapse
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Reserve Bank Plans For ‘Improbable But Not Impossible’ Power Grid Collapse
South African Reserve Bank (Sarb) senior economist Herco Steyn says the central bank and the Financial Sector Contingency Forum (FSCF) are planning for the "improbable but not impossible", scenario of a complete national electricity grid shutdown or another potential systemic event, TimesLive reports. The central bank released its Second Edition 2023 Financial Stability Review on Wednesday November 29, 2023. The review was released amid the escalation of rotational power cuts (load shedding) to stage 6 last week, which later settled to stage 4 by Tuesday. "The Sarb, through the FSCF, continued to plan for the improbable but not impossible scenario of a complete national electricity grid shutdown or another potential systemic event," the report says. "The domestic economy continues to face a number of headwinds. Fiscal constraints remain a concern, while economic growth continues to disappoint, weighed down by electricity generation constraints, as well as rail and port infrastructure bottlenecks, among others," the review said.
Source: https://allafrica.com/stories/202311300008.html
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