Eskom power cuts return to haunt SA’s economy
Rand weakens past R15/$, while benchmark 10-year bond yield rises
After 206 days without power cuts, SA was again plunged into darkness on Wednesday when Eskom implemented stage two load-shedding in a bid to protect the system from total collapse.
It was a wake-up call for the markets. The rand weakened past R15/$ for the first time this week. The government’s cost of borrowing also increased as the benchmark 10-year bond yield rose from 8.225% to 8.445%.