Rising electricity costs knock confidence index

Since load-shedding began in 2007, heralding the start of a prolonged electricity crisis in South Africa, the average cost of electricity has risen 290%, weighing on business confidence and economic growth. "Electricity is similar to the blood of any modern economy. Higher electricity prices equal higher input costs, which lead to lower profit margins for producers and higher prices for consumers," said Fanie Joubert, a consulting economist at Third Circle Asset Management.