Blackouts Cripple South Africa Again as Eskom Stumbles

South Africa grappled with traffic gridlock and shuttered businesses after the struggling state power utility cut supply for a third day to prevent a total collapse of the grid.

The return to blackouts compounds worries about Eskom Holdings SOC Ltd.’s precarious position and the threat it poses to the economy. It also is an embarrassment for the ruling African National Congress just three months ahead of national elections. The rand tumbled Feb. 12 and government bond yields surged after Eskom suddenly announced sharply widened cuts.

The crisis places President Cyril Ramaphosa, a former labor leader who took power in February ...