- Country: South Africa
- Geographic Coverage: National
- Lead Local Agencies:
- Economic Development Department (EDD)
- Department of Trade and Industry (dti)
- Trade and Industrial Policy Strategies (TIPS)
- Mining and Electricity Pricing
South Africa achieved steady economic growth throughout the first decade of the 21st Century, yet considerable socioeconomic disparities continue to exist in the country.Acutely aware of these challenges and committed to addressing them, the Government of South Africa (GoSA) outlines its vision and priorities in the 2030 National Development Plan (NDP).
Of critical importance is the energy sector, as South Africa’s economy is one of the most energy intensive in the world. About 90% of the country’s electricity generation capacity comes from coal-fired plants. Further, South Africa’s large economically important industry and mining sectors consume over 60% of the electricity produced in the country, while residential consumers use only 16-18%.
In light of these challenges, the GoSA is making concerted efforts to transition the economy into a more energy efficient and less energy intensive one. GGGI has supported this effort through a comprehensive examination of the relationship between South Africa’s mining sector and electricity prices.
In 2013, GGGI partnered with the Economic Development Department (EDD) to assess the economic impact of electricity price increases on selected mining industry value chains, including coal, gold, platinum, iron ore and aluminum. The final report was published in 2015, and serves as a valuable information resource as the GoSA continues to respond to the country’s ongoing electricity challenges.
In 2014, GGGI partnered with UNEP’s global Financial Inquiry to develop a case study on South Africa’s efforts to align its financial system with a green and inclusive economy.