Trade union Uasa says the recent fragile performance of the mining and manufacturing sectors is not only the result of protracted strikes across both sectors, which resulted in a “massive” reduction in export figures, but can also be attributed to inadequate electricity provision by State-owned energy utility Eskom.
“If sufficient capacity in respect of electricity provision existed, other goods could have been exported.
“The emasculating effect of the less than favourable capacity of Eskom on our economy cannot be underestimated,” it argued.
Uasa added in a statement on Friday that with the building cost of coal-fired power stations Medupi and Kusile, in Limpopo and Mpumalanga respectively, likely to eventually be “close to three times the original amount budgeted”, with the completion date having been postponed on several occasions, these power stations were “among the worst project failures in the world”.
Uasa appealed to government to launch a detailed investigation into the causes of the “spiralling costs” as well as the causes of the delays.