South Africa’s political upheaval took a breather this week but fears about the state electricity company, Eskom, have grown. Problems at Eskom not only pose a threat to economic activity but, if left unattended, could worsen the public debt dynamics. Meanwhile in Nigeria, the central bank this week slashed daily ATM withdrawal limits in another effort, alongside demonetisation, to clamp down on the parallel FX market. But the CBN’s focus on curbing the use of cash misdiagnoses the cause Nigeria’s inflation and currency woes.
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