South Africa’s blackouts hurt the economy in unexpected ways

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South Africa’s blackouts hurt the economy in unexpected ways
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While South Africa’s politicians are behaving like headless chickens, there are fewer of the real sort

Save time by listening to our audio articles as you multitaskThe question of what came first, the chicken or the egg, is irrelevant for poultry producers; all they see is one long value chain. They raise parent chickens, whose eggs are taken to hatcheries. The hatched chicks are moved to broiler farms, the cacophonous prelude to the abattoir. Chickens are typically slaughtered at a precise, young age—34 days old—to meet buyers’ requirements.

Poultry is just one sector hurt by load-shedding. Mining output has fallen year-on-year for ten consecutive months. The small businesses that serve millions of consumers in poor, mostly black townships are going bust. Shoprite, a large grocery chain, forecast that if power cuts continue, it will spend 1.2bn rand a year on diesel to keep the lights on, a sum equal to about a fifth of its annual profits. Economists reckon power cuts may tip the country into recession in 2023.

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