Date: Wed 26 March 2008 Category: South African Electricity Crisis
The Banking Association of South Africa has warned that Eskom's electricity supply problems has caused a major crisis for the low-cost housing market in the country which could result in social instability in the country. Eskom recently shocked developers, builders, unions and organised business with their decision to delay electricity certificates for new building projects by up to six months.The decision applies to apartment and office blocks, factories, shopping malls and all other large projects that use more than 100kVA.According to the Banking Association of South Africa's financial services charter housing initiative co-ordinator, Pierre Venter, there is a backlog of 2.3 million houses for the subsidy market.Venter said building costs within the charter housing market had increased by 25 percent year on year, which was above the inflation rate. He believed the investigation by the competition commission into the construction sector was probably warranted "for certain products".Xolani Xundu, the chief director and spokesperson for housing minister Lindiwe Sisulu, said the low-cost residential housing market was a priority of both the housing department and the national government.