Overhauling South Africa's utilities will take time

Significance

A longer-term rainfall deficit has worsened the problem in some areas. This occurs at the same time as the electricity parastatal Eskom has escalated load shedding (electricity blackouts) due to a lack of generating capacity.

Impacts

• The government's planned partial absorption of Eskom debt may increase the risk profile of government finances.
• Lack of investment will hamper the necessary adaptation of water and sanitation systems to climate change.
• Continued utility failures will further erode support for the ruling ANC.