An energy crisis has led to recurring power outages throughout South Africa as Eskom, the government owned electricity provider, continues to intentionally cut power to customers resulting from breakdowns of multiple power generating plants.
The ongoing rolling blackouts are some of the worst the country has experienced in many years causing factories, refineries, mines and other businesses to remain closed. The country’s president declared a state of disaster earlier this month.
The blackouts are effecting everything from traffic lights, water purification, internet connectivity and food availability.
Government officials are concerned that additional failures of the power grid could lead to widespread rioting and outbreaks of violence which could lead to a civil war.
Residents are concerned for their safety even at home as thieves and looters target homes without power.
The US Embassy in Pretoria has issued an advisory for Americans living in South Africa to “maintain 72 hours’ worth of supplies at home by stockpiling non-perishable food, three litres of drinking water per person per day, and medicines and first aid supplies”.
The ongoing blackouts have been ongoing for weeks and have created a SHTF scenario for many people even though the country is very rich in natural resources.
Roughly 77% of South Africas electricity is generated by coal generators.
The RAND refinery, the largest in the country, is reportedly operating at only 75% due to shutdowns of mines resulting from the power outages.
The largest exports are precious metals, particularly gold and platinum and other PGMs, which account for upwards of $25 billion. Reports from Reuters suggest that Platinum Group Metal exports, which includes rhodium and palladium, could be down as much as 15% or more this year.
South Africa is the largest producer of platinum group metals to the world, followed closely by Russia. The reduction in output will impact global supplies and markets as demand for these metals remains high.
