Part 6/10:

## Overexpansion and Economic Decline

The 1970s marked a turning point as volatile changes in gold prices signaled the end of an economic boom. ESCOM ramped up its coal power station constructions significantly, anticipating continuous growth. Unfortunately, this resulted in overexpansion, poor financial governance, and a misguided confidence in projected growth rates, which would later usher in significant operational challenges in the following decades.

By the late 1980s, South Africa faced heavy sanctions and a struggling economy, prompting a shift in ESCOM’s operations towards privatization and deregulation. However, responses to this economic crisis led to misguided energy contracts that would prove detrimental to Eskom’s financial health in the long run.