According to Rand Water CEO Sipho Mosai, municipal mismanagement and inadequate capacity are the root causes of the ongoing water shortage crisis in South Africa and Gauteng. Mosai clarified that Rand Water, as a bulk water supplier, does not have a supply issue and provides enough water to municipalities.
Moody’s, a rating agency, stated in a research note that Eskom, the South African utility company, is unlikely to meet its performance targets due to mismanagement, coal supply issues, skills shortages, sabotage, and theft.
Eskom had set ambitious goals to improve its Energy Availability Factor (EAF) to 65% by March 2024 and 70% by March 2025, but currently, its fleet has an EAF of 57%. Moody’s emphasized that these targets are challenging given Eskom’s difficulties and track record.