- The South African Reserve Bank (SARB) is reportedly taking steps to prepare for a potential collapse of the country’s electricity grid, which could have serious economic and financial implications.
- The SARB has asked banks and other financial institutions to assess their exposure to the risks associated with a grid collapse and to take steps to mitigate those risks.
- The central bank has also reportedly been in discussions with the government and Eskom, the state-owned electricity provider, about the risks to the financial system posed by a grid collapse.
- The risk of a grid collapse has increased in recent years, due to a combination of factors, including aging infrastructure, underinvestment in maintenance and upgrades, and the impact of climate change on energy demand and supply.
- A grid collapse could have significant economic and social consequences, including disruptions to businesses and households, loss of productivity, and increased crime and social unrest.
- The SARB’s preparations for a grid collapse are part of its broader mandate to maintain financial stability and mitigate systemic risks in the economy.
- The central bank has urged all stakeholders, including the government, Eskom, and the private sector, to take decisive action to address the underlying causes of the electricity crisis and to ensure a stable and reliable electricity supply for the country.
SA Reserve Bank governor Lesetja Kganyago.