Morning Brief – Monday, 21 November 2022

Good morning.

Here’s what you need to know today:

• Eskom’s decline will not end anytime soon.
• Stage 5 load-shedding to be implemented this week.
• The rand could strengthen to R15.20/$ by the end of 2023.

Breaking point: Eskom metrics, projections show parastatal’s decline will not end anytime soon – News24

Eskom will be unable to prevent load-shedding for at least the next two years due to the unreliability of its coal-powered fleet while private sector projects are built and commissioned in the background.

The power utility often makes use of its Open Cycle Gas Turbines to mitigate the impacts of load shedding but it has run out of money to pay for more diesel having already forked out R12 billion for fuel since April 1 of this year.

Read more here. (for subscribers)

Stage 5 load shedding hitting this week – here’s the new schedule – Business Tech

On Sunday there was a brief reprieve from load-shedding after Eskom said there would be a nine-hour break from blackouts, but it returned later in the day and will increase to stage 5 this week.

Load-shedding will move to stage 5 in the evenings from Monday to Wednesday and will be a mix of stages 2,3, and 4 during the daytime. The increase in load-shedding is due to further breakdowns and a lack of generation capacity at the power utility.

Read more here.

Old Mutual sees rand at R15.20 by end-2023 – Business Day

The rand could improve significantly by the end of next year says Old Mutual chief economist Johann Els, citing South Africa’s sovereign debt reduction and a slowdown in global interest rate hikes.

The group says radically improved debt projects as outlined in the medium-term budget policy statement will improve global investor sentiment in the local currency. A stronger rand will be good news for those of us looking to do some international travel.

Read more here. (for subscribers)