Answer to Question #208837 in Microeconomics for Sinentlahla

Question

1.How eskom as a monopoly has impacted on the South African economy, since 2009 (50)

Answer 1

Eskimo is a state-owned electricity company providing energy to South African citizens. However, the company is faced with corruption, rising operational costs and debts that threaten the utility framework in South Africa. The massive debts are dragging the south African budget deficit. In addition, industrial mining and agricultural sectors are under performing as they produce low output due to the limited availability of electrical power.