South Africa Lost R481 Billion to Load Shedding in 2024: A Significant Drop from 2023

South Africa’s economy lost R481 billion due to load shedding in 2024, an 83% decrease from the R2.9 trillion lost in 2023, according to a report by the Council for Scientific and Industrial Research (CSIR). This improvement comes as Eskom stabilized power supply through increased maintenance and other measures, though challenges remain.

A Dramatic Reduction in Economic Losses

The CSIR report, released on Monday, highlights the significant progress made in reducing the economic impact of load shedding. In 2023, record blackouts cost the economy R2.9 trillion, but in 2024, this figure dropped to R481 billion. Gross domestic product (GDP) for 2024 was R4.7 trillion, a modest 0.6% increase from the previous year.

The reduction in economic losses is attributed to Eskom’s efforts to improve the reliability of its coal-fired power plants, which generate the majority of South Africa’s electricity. Increased maintenance and operational improvements helped stabilize supply, though intermittent outages have returned in 2025.

Eskom’s Efforts and Ongoing Challenges

Eskom’s energy availability factor (EAF) reached an average of 60% in 2024, the highest since 2021. This improvement reflects the utility’s focus on maintaining its aging fleet of power plants. However, the system remains vulnerable, with delays in procuring additional generation capacity and breakdowns at key facilities, including the nation’s sole nuclear power station.

Electricity Minister Kgosientsho Ramokgopa has warned that the power system is still fragile. “The procurement of more generation capacity has faced repeated delays, leaving the system vulnerable,” he said. Eskom has also relied more on auxiliary diesel turbines to meet peak demand, increasing operational costs.

Declining Electricity Demand

A key factor in Eskom’s ability to maintain supply has been a 3% decline in electricity demand in 2024. This trend has continued into 2025, easing pressure on the grid. However, the reduction in demand may also reflect the economic impact of load shedding, as businesses and households adapt to unreliable power supply.

The Road Ahead

While the reduction in load shedding-related losses is a positive development, South Africa’s energy crisis is far from resolved. Eskom’s reliance on diesel turbines and the vulnerability of its power plants highlight the need for long-term solutions, including the procurement of new generation capacity and investment in renewable energy.

The government’s delays in addressing these issues have drawn criticism, with calls for urgent action to prevent a return to the severe blackouts of 2023. As Electricity Minister Ramokgopa noted, “The system remains vulnerable, and we must act swiftly to secure South Africa’s energy future.”

South Africa’s economy lost R481 billion to load shedding in 2024, a significant improvement from the R2.9 trillion lost in 2023. While Eskom’s efforts to stabilize power supply have yielded results, ongoing challenges underscore the need for sustained investment and policy action to ensure a reliable energy supply. As the country navigates its energy crisis, the focus must remain on long-term solutions to protect the economy and support growth.

{Sourced BusinessTech}

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