https://newsletter.en.creamermedia.com

Real Economy Yearbook 2023

1st September 2023

By: Creamer Media Reporter

     

Font size: - +

Under real pressure

Loadshedding continues to cast a confidence-sapping pall across South Africa’s real economy, which is also being weighed down by a series of other infrastructure failures, from water to rail.

Focusing on the electricity crisis – which remains the biggest risk to growth and development even though other threats are rising – appears to be yielding some results, albeit insufficient in speed and scale to fully address the crisis.

Some Eskom coal power stations are operating more consistently and various private generation projects are offering some relief. Nevertheless, there is still a long way to go, with South Africa’s public procurement of new generation continuing to underdeliver.

Should this trend continue, the supply/demand imbalance will not only remain, but there is also a risk of growing inequality in the sector, as small seas of power riches (concentrated around large enterprises and affluent households) become surrounded by growing oceans of power poverty.

Progress is also much too slow in adding the transmission infrastructure required to connect new generators, particularly in the renewables-potent provinces of the Eastern, Northern and Western Cape.

At distribution level, the failure of generation is no longer masking serious weaknesses and backlogs. Distribution-level faults have become far more frequent and much longer in duration and, in many areas, these are arguably causing more disruption to businesses and households than loadshedding.

The pressure on the real economy does not start and end with power, or the lack thereof, however.

Besides the hostile macroeconomic conditions of weak growth, rising costs and falling commodity prices, the real economy is also being buffeted by the microeconomic constraints associated with a collapse in the rail service, a deterioration in the condition of the roads, unstable and unclean water supply, and the ever-present threat of crime and violence.

Businesses are having to spend far more than they ever did to not only keep the lights on but also protect their own assets and those of poorly run State-owned enterprises.

Amid these circumstances, farmers, miners and manufacturers have displayed remarkable resilience, as well as magnanimity, on a daily basis in many areas, where big and small companies are assisting with crucial repairs that their municipalities have neglected.

At national level, this willingness to assist is evident in the participation of business in initiatives to tackle the power and freight-logistics crises, and the related crisis of crime and corruption.

While it is essential that the fires on these three burning platforms are brought under control, it is equally important that capacity is also rebuilt within the public sector,

otherwise any progress made will not be sustained.

And without sustainable progress in building capacity in the public sector, the ability of the country to build resilience against further crises will be eroded, along with South Africa’s appeal as an attractive investment option.

To access the flipbook click here

Edited by Creamer Media Reporter

Creamer Media's Research Reports are available to subscribers.

  • If you are a Research Chanel Africa subscriber, click here to log-in to Research Chanel Africa.
  • If you are a magazine-and-online subscriber to Creamer Media's Engineering News & Mining Weekly, your subscription entitles you to one free research report of your choice. You would have received a promotional code at the time of your subscription. Have this code ready and click on "Buy Report". You will be directed to the Creamer Media Online Store and, at the time of check-out, please enter your promotional code to download your free report. Email subscriptions@creamermedia.co.za if you forgot your promotional code.

    If you have previously accessed your free report, you can purchase additional Research Reports by clicking on the “Buy Report” button below the Research Report that you wish to purchase and you will be directed to Creamer Media's Online Store.
  • If you are not a subscriber, you can either buy the individual research report by clicking on “Buy Report” or you can subscribe and, not only gain access to your report, but also enjoy all other subscriber benefits. Click on the “Subscribe and Download” button if you wish to subscribe or find out more.

    The most cost-effective way to access our Research Reports is by subscribing to Creamer Media's Research Channel Africa - you can upgrade your subscription now at this link.

Comments

Showroom

SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 
Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 23 February 2024
Magazine round up | 23 February 2024
23rd February 2024
An image of Dr Mehran Zarrebini posing in front of waste tires
Firm emphasises valorisation
23rd February 2024 By: Lumkile Nkomfe
Coal being transported to port
Mining tax revenue down by 50.4% y/y
21st February 2024 By: Darren Parker

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.243 0.343s - 178pq - 2rq
Subscribe Now