VenturesNow

Power Outage: Industrial action looms as South Africa’s labour unions reject pay rise

Published

2 years ago

April 22, 2023

Representatives of South African Labour have revealed that they have rejected a 3.75% pay rise offer from South Africa’s state power enterprise, Eskom Holdings, as it is below the rate of inflation.

Eskom, which is South Africa’s primary electricity supplier, generates approximately 90% of the electricity used in the country, and approximately 30% of the electricity generated on the African continent, but has been struggling over poor financing.

The country has lately had challenges with its electricity supply which has forced Eskom to announce the previous series of power rotation arrangements.

Eskom has been instituting rolling blackouts of approximately 10 hours per day as it struggles to fulfill electricity demand, and is under pressure from unions to increase wages by 15% above the country’s current inflation rate.

Data from Statistics South Africa (SSA) on Wednesday showed consumer inflation rose from 7.0% in February to 7.1% year-on-year. It rose from 0.7% to 1.0% on a month-on-month basis.

The three largest unions at Eskom, the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (NUMSA), and Solidarity, stated they intended to sign a two-year pay agreement “so that we can have an opportunity to stabilise the power utility.”

NUMSA deputy general secretary, Mbuso Ngubane claimed that the public fury brought on by recent blackouts had created a new threat and left workers “vulnerable out there in communities,” compensating them for the risk of working with high voltages.

Negotiations will resume on May 8, and industrial strikes could follow if the power outage continues.

Related Topics:Eskom Featured South Africa

Click to comment

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”