Economics
European Firms Say South Africa’s Poor Utilities Deter Investment
- Inconsistent electricity and water supply push up costs
- Black empowerment laws are too bureaucratic, officials say
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European businesses are delaying investment in South Africa because of poor power and water supply and the costs of complying with Black economic empowerment legislation, representatives of an industry body said.
South Africa has suffered intermittent power outages since 2008 after the state electricity monopoly failed to invest adequately in new generation capacity and the provision of other services such as water has deteriorated.