South African Lack of Power Infrastructure Means Job Losses
Today, IRIN, the UN Office for the Coordination of Humanitarian Affairs, brings attention to power shortages in South Africa which have halted production and created job losses for miners. The slow down of one of South Africa's most important industries may have a serious impact on government goals of job creation and poverty alleviation.
Any job losses in the mining sector could have an impact on the South African Development Community (SADC), warned Lesiba Seshoka, spokesman for the National Union of Mineworkers (NUM). South African mines employ 460,000 workers - 40 percent of them from neighbouring countries - and shutting down operations had already affected the incomes of casual workers...
South Africa's economy needs to grow at least 6 percent annually to keep unemployment from rising above the official estimate of 25 percent, although independent economists have put the joblessness rate at nearer to 40 percent.
According to Schussler, economic growth could slow from over five percent in 2007 to three percent in 2008 as a result of the outages and anticipated slower growth in the global economy. The South African economy is the most influential in the region, and any contraction could have a ripple effect on neighbouring countries.
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Surrounding countries affected as well
South Africa isn't the only country to suffer from the lack of infrastructure-- Yesterday's AllAfrica reports that Botswana is feeling the affects as well. These power outages may affect economic productivity and efficiency in the future.
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