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You are here: Home / Archives for Electricity

Electricity

19 December 2024

‘There’s no turning back’ – Minister Ramokgopa on Eskom

Location: News

'There's no turning back' - Minister Ramokgopa on Eskom

The financial year ending March 2024 was an inflection point for Eskom, signifying the turnaround of the energy utility.

This according to Electricity and Energy Minister, Dr Kgosientsho Ramokgopa, who addressed the media at the utility's annual results announcement for the Financial Year 2024.

“The 2024 financial year is a point of inflection. There’s no turning back [and] we’ll only improve from here and that’s the assurance we are giving to the country,” Ramokgopa said on Thursday.

The financial year ending in March was a challenging one for the power utility.

The country experienced at least 329 days of load shedding (between April last year and end of March 2024), there was a decline in plant availability; distribution energy losses amounted to some 13.9TWh as well as worsened emissions performance.

Eskom also recorded a net loss before tax of some R25.5 billion – an improvement from the previous financial year’s R34.6 billion.

The separation of the National Transmission Company has triggered a once-off accounting adjustment – leading to loss after tax of R55 billion.

The National Transmission Company South Africa (NTCSA) officially commenced trading earlier in the year, marking the company’s establishment as a distinct and wholly owned subsidiary of Eskom. At the time, it was said that the NTCSA will own and operate the country’s national transmission system.

The Minister acknowledged the issues faced by Eskom over the last financial year. 

He reminded South Africans, however, that the electricity producer has upped its performance – resulting in more than 260 days of no load shedding, improved plant performance and billions of Rands in diesel cost savings.

“We are taking responsibility of what happened, and the numbers don’t look good. We carry that responsibility and take the good with the bad. The projection outlook going forward is very positive, but we are responsibility for that record. 

“[But] we are able to illustrate to the country that we are moving in the right direction. We can simply improve from here,” he said.
Eskom Group Chief Executive, Dan Marokane, explained that although the year was a “painful year” for the electricity provider, it was also a “building year in terms of our path towards recovery”. 

This was the year in which the Generation Recovery Plan was instituted. A lot of effort went into investing into both maintenance expenditure and human resources that was critically required to enable execution.

“It’s also a year where we started seeing the government debt relief programme kicking into action. The certainty that arises from that gave us the ability to plan better and to do the deep maintenance that was required in that financial year,” he said.

Marokane, reiterated the Minister’s sentiments – calling the tough results a part of the state-owned entity’s recovery.

“We own [the results]. They are our results. They are part of our story. They are part of our journey, and we hope that in due course as we add more points, you will begin to see the recovery path unfolding,” Marokane said. – SAnews.gov.za

 

NeoB
Thu, 12/19/2024 - 14:21

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Read more‘There’s no turning back’ – Minister Ramokgopa on Eskom
19 December 2024

Loss before tax for the 2024 financial year improves by R9 billion to R25.5 billion; NTCSA separation triggers once-off accounting adjustment leading to loss after tax of R55 billion; profit forecast for the 2025 financial year due to improved performance

Location: Business

Thursday, 19 December 2024: Eskom has announced its group annual results for the 2024 financial year, covering 1 April 2023 to 31 March 2024. The period marked one of the most challenging moments in the history of the company given the urgent need to deliver on the Generation Recovery Plan to address South Africa’s energy...

Read moreLoss before tax for the 2024 financial year improves by R9 billion to R25.5 billion; NTCSA separation triggers once-off accounting adjustment leading to loss after tax of R55 billion; profit forecast for the 2025 financial year due to improved performance
18 December 2024

We Are All Responsible for Gauteng’s Water Problems

Location: News

Government, business and residents can all do their share to ensure a sustainable water supply

Read moreWe Are All Responsible for Gauteng’s Water Problems
15 December 2024

Eskom begins investigation into Matla Power Station explosion 

Location: News

Eskom begins investigation into Matla Power Station explosion 

Preliminary investigations following an explosion at Eskom’s Matla Power Station in Mpumalanga indicate that the rupture of a high-pressure steam steel pipe above the Unit 6 transformer caused Thursday’s incident.

“Eskom can confirm that preliminary investigations indicate the rupture of a high-pressure steam steel pipe above the Unit 6 transformer caused yesterday evening’s incident. The incident resulted in a loud bang and a loss of power supply to the Unit 6 area,” said the power utility in a statement on Friday.

It further added that significant amounts of dust, combined with the loss of power, prevented a fuller assessment until the first light on Friday.

“Technical teams remain on-site, assessing the extent of the damage, the scope of work, and the time required for repairs and restoration. At this stage, there is no evidence of sabotage,” said the utility.

READ | Transformer explosion leaves nine injured at power station

This as the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, joined by members of Eskom’s Executive Committee and Board, visited the power station on Friday afternoon to offer support and assistance to the Matla leadership team and employees, including visiting the injured employees.

As a result of the steam leak from the damaged pipe, nine employees sustained burn injuries. 

“One is in critical condition, and two are in semi-critical condition, but all remain stable. Six employees received less serious injuries, with two already discharged from the hospital.”

Additionally, eight members of the work team were uninjured and sent home. They, along with the next of kin of the injured and the Matla Power Station staff, received counselling and support at the start of shifts.

Meanwhile, the power utility said that the load shedding suspension outlook remains unchanged. 

In August, Eskom shared its Summer Outlook, for the period from 01 September 2024 to 31 March 2025 that predicted a likely scenario of a loadshedding-free summer due to structural improvements in the coal-fired fleet. On Friday, Eskom reached 261 consecutive days of load shedding suspension. 

As a precautionary measure, Unit 5 was taken offline following the incident to ensure the safety of all employees on-site.

This unit was due to be shut down for planned maintenance on Monday, 16 December 2024. This planned maintenance was brought forward to Saturday, 14 December 2024.

“Our emergency plans were activated accordingly and … the next steps in this plan involve ensuring the injured and their families continue to receive the support and care they need, as well as all our employees at Matla,” said Eskom Group Executive for Generation, Bheki Nxumalo. 

“We now begin a disciplined investigation, and the painstaking work required to develop a thorough, disciplined understanding of the incident that will lead us to be able to plan when the unit can be returned to service,” Nxumalo explained. 

“Matla is one of the six power stations we prioritised in the Generation Recovery Plan to end load shedding and over the past 18 months the employees have delivered an exceptional performance, achieving an Energy Availability Factor (EAF) of 67.12%,” said Eskom Group Chief Executive, Dan Marokane. 

“Based on the structural improvements in the generation performance of the coal fired fleet, week by week Eskom is increasingly able to absorb shocks to the system, even though the generation capacity remains tight. The base case scenario for the summer outlook indicates that there will be no loadshedding if unplanned outages stay at 13 000MW or below and our year-to-date average unplanned outages are at 11 875MW,” concluded Marokane.  -SAnews.gov.za 
 

Neo
Sun, 12/15/2024 - 10:23

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Read moreEskom begins investigation into Matla Power Station explosion 
13 December 2024

Year-On-Year Diesel Savings of R16.46 Billion

Location: Business

Friday, 13 December 2024: Eskom has reached a milestone of 261 consecutive days without loadshedding, achieved through the successful implementation of the Generation Recovery Plan since March 2023. This accomplishment has resulted in significant cost savings and enhanced reliability of the coal-fired fleet, ensuring a stable and reliable power supply for all South Africans.The recovery...

Read moreYear-On-Year Diesel Savings of R16.46 Billion
13 December 2024

Matla Power Station Unit 6 Incident

Location: Business

Friday, 13 December 2024: Eskom can confirm that preliminary investigations indicate the rupture of a high-pressure steam steel pipe above the Unit 6 transformer caused yesterday evening’s incident. The incident resulted in a loud bang and a loss of power supply to the Unit 6 area. Significant amounts of dust, combined with the loss of...

Read moreMatla Power Station Unit 6 Incident
12 December 2024

Transformer Explosion at Matla Power Station Unit 6 – Initial Reports Indicate 9 People Injured, One Critically

Location: Business

Thursday, 12 December 2024: This afternoon, at approximately 5:00 PM, a transformer explosion occurred at Matla Power Station in Mpumalanga, affecting Unit 6. As a precautionary measure, Unit 5 was taken offline to ensure the safety of all employees and contractors on-site. Initial reports indicate that 9 employees were injured with one in critical condition....

Read moreTransformer Explosion at Matla Power Station Unit 6 – Initial Reports Indicate 9 People Injured, One Critically
12 December 2024

“Pot” Stemmet Faces Charges Over Theft of Lottery-Funded Equipment

Location: News

Machinery removed from “minstrel museum”

Read more“Pot” Stemmet Faces Charges Over Theft of Lottery-Funded Equipment
12 December 2024

Eskom’s Grace Period for Zero Buyers Ends

Location: Business

Thursday, 12 December 2024: Eskom is reminding zero buyers that the grace period for regularising their accounts ends on Friday, 13 December 2024. Eskom has been actively conducting campaigns across various platforms to inform customers about this deadline. Customers who visit Eskom centres by this date and settle any outstanding tamper fines will have their...

Read moreEskom’s Grace Period for Zero Buyers Ends
12 December 2024

Transformer Trip at Midas Substation Affects Electricity Supply to Carletonville, Fochville and Potchefstroom

Location: Business

Thursday, 12 December 2024: On 11 December 2024 at about 18:30 a 500 MVA transformer at the Midas Substation tripped, disrupting electricity supply to approximately 15 mines in the Carletonville, Fochville, and Potchefstroom areas, as well as to residential customers. Eskom’s technical teams acted swiftly and have managed to restore essential load to the mines,...

Read moreTransformer Trip at Midas Substation Affects Electricity Supply to Carletonville, Fochville and Potchefstroom
11 December 2024

Two sentenced for crimes at Duvha Power Station

Location: News

Two sentenced for crimes at Duvha Power Station

Two people have been sentenced to five and 15 years imprisonment, respectively, for crimes targeting critical infrastructure at Duvha Power Station in Mpumalanga.

The two were sentenced in relation to separate incidents at the power station.

In a statement, Eskom said the two sentences “underscore the severe consequences of actions that threaten the nation’s energy supply”.

“On 8 October 2024, the Middelburg Magistrate’s Court sentenced Tseliso Ramosebetsi to 15 years in prison. Ramosebetsi was caught cutting and removing copper cables from the coal conveyor belt, a vital component of Duvha Power Station operations. Ramosebetsi and his accomplice, Mpho Johannes Machekela, were apprehended on 26 March 2024 after being detected through drone surveillance. 

“While Ramosebetsi has been brought to justice, Machekela absconded from trial, and a warrant for his arrest has been issued.

“In a separate case, the Witbank Magistrate’s Court sentenced Frederick Jacobs Van Wyk to five years in prison on 23 October 2024 for the theft of aluminium cables near the Horticulture site outside Duvha Power Station,” the statement read.

Eskom said the two sentences should serve as a deterrent to other would-be criminals.

“Eskom commends the South African Police Service for their dedication to securing these convictions, and thanks its security teams for their vigilance and collaboration in protecting the nation’s assets.

“Tampering with or damaging critical infrastructure is a criminal offence under the Criminal Matters Amendment Act, with penalties of up to 30 years’ imprisonment. Such activities disrupt essential services, pose serious safety risks, and undermine the sustainability of the electricity network, impacting communities and the economy.

“Eskom is committed to safeguarding the security and integrity of its critical infrastructure. The ongoing collaboration between Eskom’s internal security investigations team and law enforcement agencies, coordinated by the National Energy Crisis Committee’s Safety and Security Priority Committee, is yielding positive results in our efforts to combat crime and corruption,” Eskom said. – SAnews.gov.za

NeoB
Wed, 12/11/2024 - 10:16

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Read moreTwo sentenced for crimes at Duvha Power Station
11 December 2024

President Ramaphosa Concludes Meeting with Mpumalanga Provincial Executive

Location: News

The Presidency of the Republic of South Africa
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President Cyril Ramaphosa has concluded a constructive meeting with the Mpumalanga provincial executive.

This was a 3rd session between the National Executive and a provincial executive council following meetings with the provincial leadership of Limpopo and KwaZulu-Natal.

Over the next year the National Executive is planning to meet with the leadership of all other provinces. The meeting acknowledged the great potential that exists in Mpumalanga that can be harnessed to resolve the many challenges facing the province. Therefore, inclusive economic growth and job creation must therefore be at the forefront of the efforts of government and all social partners.

The President welcomed the detailed approach applied by the provincial leadership on areas that are focused on economic growth and job creation. 

The meeting welcomed the province's articulated vision on future catalytic projects that will inject more growth opportunities in Mpumalanga. 

President Ramaphosa encouraged the province to explore project funding mechanisms that are not wholly dependent on the national fiscus. 

Relevant state agencies will work closely with the province in the packaging of catalytic projects for private sector partnership and funding. 

The meeting agreed on further enhancing inter-governmental cooperation in addressing pressing issues in the provision of basic services such as water and sanitation and electricity. 

President Ramaphosa applauded the Mpumalanga province for its investments into social infrastructure such as boarding schools and hospitals. 

Distributed by APO Group on behalf of The Presidency of the Republic of South Africa.

Read morePresident Ramaphosa Concludes Meeting with Mpumalanga Provincial Executive
10 December 2024

Two Sentenced for Crimes Targeting Critical Infrastructure at Duvha Power Station

Location: Business

Tuesday, 10 December 2024: Eskom is pleased to announce the sentencing of two individuals involved in separate criminal activities targeting critical infrastructure at Duvha Power Station in Mpumalanga. These sentences, handed down in October 2024, underscore the severe consequences of actions that threaten the nation’s energy supply. On 8 October 2024, the Middelburg Magistrate’s Court...

Read moreTwo Sentenced for Crimes Targeting Critical Infrastructure at Duvha Power Station
10 December 2024

President Ramaphosa stresses Job Creation, Inclusive Growth in Mpumalanga

Location: News

President Ramaphosa stresses Job Creation, Inclusive Growth in Mpumalanga

President Cyril Ramaphosa has underscored the importance of inclusive economic growth and job creation as the central focus of government and its social partners. 

The President was speaking at the meeting between the National Executive and the Mpumalanga Provincial Executive Council at the Nkangala District Council Chambers, Mpumalanga. 

President Ramaphosa reiterated that cooperative governance is a constitutional mandate, urging all spheres of government to collaborate more effectively to address common challenges. 

Highlighting Mpumalanga’s potential, President Ramaphosa noted the province's dual role as South Africa’s energy powerhouse, fuelled by its abundant coal reserves, and a hub for agriculture and tourism. 

However, he also acknowledged the significant challenges the province faces, including an unemployment rate above the national average and widespread poverty. 

“For Mpumalanga, inclusive economic growth and job creation must therefore be at the forefront of the efforts of government and all social partners. Like other provinces, Mpumalanga needs to grow faster, and the benefits of growth need to reach more of its people.

“Fortunately, this province has many advantages that it can use to drive growth and development. Mpumalanga is literally South Africa’s powerhouse,” the President said. 

This is the National Executive’s third engagement with a provincial executive council. The Executive has previously met with the provincial leadership of Limpopo and KwaZulu-Natal.

Over the next year, the National Executive is planning to meet with the leadership of all other provinces. 

The President pointed to the province's critical role in the country’s just transition to a low-carbon economy, stressing the need to balance environmental objectives with protecting livelihoods.

“Mpumalanga is literally South Africa’s powerhouse. Most of the country’s electricity comes from here, fuelled by the abundant coal reserves in this province.

“Mpumalanga will therefore continue to be vital to the social and economic development of the country for many years to come. For this reason, the province will also be at the centre of the just transition to a low-carbon economy,” the President said. 

He called for investment in new technologies, industries, and skills to drive growth and create opportunities for communities.

President Ramaphosa lauded Mpumalanga's commitment to infrastructure development, which he described as essential for economic growth and improving the quality of life for residents. 

“This is a fertile province, which has the ability to sustain a wide variety of agricultural activities. Mpumalanga is a province of natural splendour. It has long been a destination for visitors from across South Africa and across the world. We are encouraged by the determination of the province to invest in infrastructure,” the President said. 

He encouraged provincial leaders to strengthen partnerships with national entities such as Infrastructure South Africa and the Infrastructure Fund.

The meeting, attended by Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa, Mpumalanga Premier Mandla Ndlovu, and several Ministers and Deputy Ministers, aimed to align national and provincial priorities.

As engagements with other provinces continue, President Ramaphosa emphasised the importance of leveraging regional strengths to complement national development goals.

“Different provinces have different resources and capabilities. As a country, we must ensure that these are developed and work to complement each other,” the President said.

The gathering is part of the President’s ongoing efforts to enhance cooperation between national and provincial governments to address pressing socio-economic challenges and promote sustainable development. – SAnews.gov.za

DikelediM
Tue, 12/10/2024 - 14:40

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Read morePresident Ramaphosa stresses Job Creation, Inclusive Growth in Mpumalanga
10 December 2024

Submit applications to JET funding platform today

Location: News

Submit applications to JET funding platform today

Energy and Electricity Deputy Minister Samantha Graham-Maré has urged community project owners to submit applications to the Just Energy Transition (JET) funding platform before the 13 December 2024 deadline.

The Deputy Minister explained that the funding platform was developed by the JET Office within the Presidency “in response to the low rate of take-up for the funding committed by the International Partners Group (IPG), which have committed over $11 billion to South Africa’s goal of decarbonising our energy sector". 

“However, there has been difficulty matching projects to funders, and many potential projects are not always at a stage where funders can commit.

“The purpose of the JET Funding Platform is to be a matchmaker between grant funders and potential JET beneficiaries by providing project preparation and application support, while offering complete transparency to the public on the grant spending and projects. 

“Eligible projects must aim to drive renewable energy innovation, economic growth, and community development, and through the platform, will be able to move through project preparation gates and submit feasible applications that meet the expectations and requirements of funders. The platform also allows multiple funders to support one project, which allows for greater funding and support from a variety of sources,” Graham-Maré said.

Focus areas on the platform include:

  • Supporting communities and workers impacted by the shift from coal to renewable energy.
  • Economic diversification planning to create resilient, renewable-energy-driven economies, particularly in Mpumalanga.
  • Community ownership models for renewable energy projects, ensuring inclusive participation.
  • Technical assistance and business development support for renewable energy initiatives.
  • Capacity building for institutions and community organizations active in renewable energy.
  • Start-up capital, debt, and equity for enterprises championing renewable energy in transitioning regions.
  • Reskilling and upskilling programs to help workers thrive in renewable energy careers.
  • Research and innovation to advance renewable energy technologies and community-led solutions.
  • Credit support for SMMEs driving renewable energy advancements.

“The JET Funding Platform is a beacon of South Africa’s commitment to a cleaner, greener energy future. By enabling innovative renewable energy projects, we are not just stabilising the grid but creating jobs, fostering economic resilience, and placing communities at the heart of our energy transformation. The platform's goal for the first year is to match 20 projects with R600 million of funding.

“I encourage all eligible organisations to take advantage of this unique opportunity before 13 December 2024. 

“Let us make the most of this moment to advance South Africa’s renewable energy journey, ensuring that no community is left behind, as we transition to a sustainable and inclusive energy future,” Graham-Maré concluded.

Applications can be submitted at www.jetfundingplatform.org.za. - SAnews.gov.za 

 

NeoB
Tue, 12/10/2024 - 10:01

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Read moreSubmit applications to JET funding platform today
9 December 2024

South Africa’s progress in 2024 sets the stage for hope in the New Year

Location: News

South Africa’s progress in 2024 sets the stage for hope in the New Year

As the year draws to a close, President Cyril Ramaphosa has reflected on South Africa’s achievements and challenges, expressing optimism for the year ahead in his weekly newsletter.

This year marked three decades since the advent of democracy, with the country commemorating its progress in building a constitutional order rooted in freedom, equality and human rights. 

Among the highlights was South Africa’s seventh successful General Election, with 70 political parties contesting. The Electoral Commission was lauded for its efficient management of the polls, reflecting a maturing democracy.

“Our democracy has evolved and matured. We have a Government of National Unity comprising 10 political parties from across the political spectrum. They have agreed on three strategic priorities for this administration. The first strategic priority is to grow our economy and create jobs.

“The structural reforms initiated under the sixth administration are continuing to create conditions for our economy to grow and to create jobs,” the President said. 

Economic growth and energy stability

Efforts to grow the economy and create jobs have borne fruit, with over 250 days of uninterrupted power supply this year. This achievement was credited to improved maintenance by Eskom, increased renewable energy capacity, and widespread adoption of solar solutions. 

“The work of the National Energy Crisis Committee continues. It is working to get more power onto the grid, expand our electricity infrastructure, diversify the market for the benefit of consumers, and lay the groundwork for an energy-secure future,” the President said.

President Ramaphosa said the recovery of commuter and freight rail services also marked a turning point. Passenger rail saw a surge in usage, with 31 of 40 corridors operational and passenger numbers climbing to 40 million from 15 million in the previous year.

Ports in Durban and Cape Town also experienced operational improvements, further boosting economic activity.

“We are making progress in the recovery of freight rail and dealing with longstanding operational challenges in our ports. We are seeing improvements at the container terminals in Durban and Cape Town, as well as with infrastructure upgrades,” the President said. 

Tackling poverty and the cost of living

Turning to poverty and the cost of living, the President noted a significant drop in consumer inflation, bringing down prices of essential goods, including food and fuel.

While unemployment levels remain extremely high, the President said more South Africans are finding jobs.

Government continued to sustain a substantial social wage, dedicating 60% of the national budget to social grants, subsidized housing, free basic services, and no-fee schools.

“These are the measures that reduce poverty and directly improve people’s lives. In addition to the provision of grants to vulnerable groups and unemployed people, this social wage includes subsidised housing, free basic services, no-fee schools and school nutrition. Government has been able to sustain these measures, even as public finances are under severe pressure,” President Ramaphosa said. 

Strengthening State capacity

The President said the administration has worked to enhance government’s ability to deliver basic services, despite the challenges of poor governance and financial constraints in many municipalities.

“The third strategic priority of this administration is to strengthen the capacity of the State to deliver on its mandate. Our efforts to improve the capacity and capability of the state to deliver on basic services continue,” the President said. 

The President cited disruptions in the supply of electricity and clean water as a major problem in many municipalities. He added that many local councils are plagued by poor governance, limited capacity and severe financial constraints which affect service delivery. 

“These are the challenges we are grappling with. We have identified local government as a major focus in this administration. Through initiatives like the Presidential eThekwini Working Group, we are bringing all stakeholders together to solve local problems,” the President said. 

Challenges and Future Plans

While progress has been made, the President acknowledged persistent challenges.

Unemployment remains high, crime and violence are widespread, and service delivery disruptions are a major concern. However, he emphasised the importance of collaboration among government, business, labour, and civil society to address these issues.

“The progress we have made this past year and during the course of the previous administration shows that we can overcome the difficulties our country faces.

“As government, business, labour and civil society, we are able to achieve a great deal when work in unison to overcome our common challenges,” the President said. 

G20 Summit in 2025

Looking ahead, South Africa will host the G20 Summit in 2025, further positioning itself as a key player in addressing global challenges. 

The administration also plans to launch a National Dialogue to unite citizens in crafting a shared vision for the country.

“In the new year, we will embark on a National Dialogue that will draw together all South Africans in crafting a common vision for the country,” the President said. 

Concluding his message, the President expressed hope for 2025, vowing to build on the momentum of 2024. 

“Overcoming poverty and underdevelopment, creating more jobs, and addressing societal ills like gender-based violence, requires that we must all play our part, where we can.

"On many fronts, this year has been better than the last. We will build on these achievements in 2025. 

"Wherever you may be this festive season, I wish you well,” the President said. – SAnews.gov.za

DikelediM
Mon, 12/09/2024 - 11:24

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Read moreSouth Africa’s progress in 2024 sets the stage for hope in the New Year
6 December 2024

Here’s How an SRD Beneficiary Spent Their R370 Grant

Location: News

We joined Willem Witbooi from George while shopping on Black Friday

Read moreHere’s How an SRD Beneficiary Spent Their R370 Grant
4 December 2024

Joint Operation Exposes Illegal Electricity Operation in Fochville Costing Eskom Millions of Rands

Location: Business

Wednesday, 04 December 2024: A collaborative operation involving Eskom Gauteng Distribution Security, the South African Police Service (SAPS), City Power and Eskom-contracted security personnel uncovered a large-scale illegal electricity operation during a raid at three houses located on a farm, which was heavily guarded, in Leeupoort near Fochville in Gauteng. Intelligence investigations uncovered that stolen...

Read moreJoint Operation Exposes Illegal Electricity Operation in Fochville Costing Eskom Millions of Rands
4 December 2024

SA, Nigeria talk trade

Location: News

SA, Nigeria talk trade

President Cyril Ramaphosa says South Africa and Nigeria enjoy strong diplomatic ties and expanding trade and investment flows.

“The strategic positioning of both countries in their respective regions presents enormous opportunities for collaboration,” President Ramaphosa said.

South Africa and Nigeria are this year marking 30 years of diplomatic relations, established in February 1994. 

Speaking during a roundtable discussion between South Africa and Nigeria held in Cape Town on Tuesday, President Ramaphosa said in West Africa, Nigeria is the main destination for South African exports and investments.

“But more needs to be done to improve trade and commercial relations between the two countries,” he said.

President Ramaphosa said South Africa runs a large trade deficit with Nigeria, mainly due to its import of Nigerian oil and gas.

“There is a need to diversify our trade to ensure a mutually-beneficial partnership. We are greatly encouraged by the presence of South African companies in Nigeria, just as we welcome Nigerian companies in South Africa. 

“We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact on the operations of companies,” he said.

The President visited Nigeria during a State Visit in 2021 and the Ministers of Trade launched the Joint Ministerial Advisory Council on Industry, Trade and Investment.

He added that South Africa and Nigeria have agreed on the full operationalisation of the Council.

“This will support a conducive environment for improved trade and investment. Through the Council, we hope to ensure the efficient resolution of trade- and investment-related challenges.

“As governments, we have committed in our Bi-National Commission to create an enabling environment for doing business in our respective countries. We have an opportunity to drive industrialization.”

READ | SA-Nigeria conclude successful Bi-National Commission

The first citizen said in the automotive sector for example, the two countries can create value chains in the manufacture of components and electric motorcycles.

“In critical minerals, we can use lithium to manufacture electric batteries. There is also much opportunity for cooperation on pharmaceuticals. Our two countries are in a strategic position to benefit from the rapid growth of clean energy manufacturing industries.

“South Africa has developed a Just Transition Framework and an Investment Plan that anticipates massive investments in renewable energy and the green economy over the next few years,” he said.

In addition, as part of the broader global transition to a low-carbon economy,  the two countries must leverage the abundant natural resources that exist to promote green industrialisation. 

“We should leverage each other’s capabilities in minerals processing. We must work together to ensure critical minerals are beneficiated at source. We call on business to support and involve themselves in these initiatives. 

“Our development finance institutions can work together to support infrastructure development.”

The President said South Africa has embarked on a massive infrastructure investment drive that encompasses projects in electricity generation and transmission, bulk water supply, roads, railways, bridges and ports.

“We need to explore how we can mobilise our respective capabilities and resources to develop social and economic infrastructure in our countries.

“The African Continental Free Trade Area, once fully implemented, will enable a massive growth in intra-African trade and investment. We must identify what products can be traded among ourselves that we are now importing from elsewhere,” he said. -SAnews.gov.za 

 

Edwin
Wed, 12/04/2024 - 11:16

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Read moreSA, Nigeria talk trade
4 December 2024

Young South African Scientists Impress Judges at Türkiye Science Fair

Location: Business

Wednesday, 04 December 2024: Two South African learners from the Eskom Expo for Young Scientist International Science Fair were awarded medals after successfully showcasing their research projects at this year’s İzmir International Innovation Science Energy Engineering Fair (IISEEF) in Türkiye. Thiedu Du Preez, 17, from Vredenburg High School on the West Coast, was awarded a...

Read moreYoung South African Scientists Impress Judges at Türkiye Science Fair
3 December 2024

GDP decreases by 0.3% in the third quarter of 2024

Location: News

GDP decreases by 0.3% in the third quarter of 2024

South Africa’s Gross Domestic Product (GDP) decreased by 0.3% in the third quarter of 2024, following an increase of 0.3% in the second quarter of 2024.

“The agriculture industry was the main drag on growth on the production (supply) side of the economy, with transport, trade and government services also contributing to the slowdown. On the expenditure (demand) side, there was a decline in imports, exports and government consumption,” Statistics South Africa (Stats SA) said on Tuesday.

The agriculture, forestry and fishing industry decreased by 28,8%, contributing -0,7 of a percentage point to the negative GDP growth. This was primarily due to decreased economic activities reported for field crops. 

The transport, storage and communication industry decreased by 1,6%, contributing -0,1 of a percentage point. 
Decreased economic activities were reported for land transport and transport support services. 

“The trade, catering and accommodation industry decreased by 0.4%. Decreased economic activities were reported for wholesale trade, motor trade and food and beverages. General government services decreased by 0.1%, mainly due to decreased employment in national and provincial government and extra-budgetary institutions. 

“The finance, real estate and business services industry increased by 1.3%, contributing 0.3 of a percentage point. Increased economic activities were reported for financial intermediation, insurance and pension funding, auxiliary activities, real estate activities and other business services,” Stats SA said.

The personal services industry increased by 0.5%, contributing 0.1 of a percentage point. 

Increased economic activities were reported for health and education. 

“The manufacturing industry increased by 0.5%, contributing 0.1 of a percentage point. Three of the ten manufacturing divisions reported positive growth rates. 

“The largest positive contribution was reported for the basic iron and steel, non-ferrous metal products, metal products and machinery division. The mining and quarrying industry increased by 1,2%, contributing 0,1 of a percentage point. Increased economic activities were reported for manganese and chromium ore.”

Expenditure on GDP 

Expenditure on real GDP decreased by 0.2% in the third quarter of 2024, following an increase of 0.4% in the second quarter of 2024. 

“Household final consumption expenditure (HFCE) increased by 0.5%, contributing 0.3 of a percentage point to the total negative growth. The highest growth rates were reported for non-durable and semidurable goods,” Stats SA said.    

  
The main positive contributors to the increase in HFCE were expenditures on food and non-alcoholic beverages (0.9% and contributing 0.1 of a percentage point), housing, water, electricity, gas and other fuels (0.6% and contributing 0.1 of a percentage point), recreation and culture (1.2% and contributing 0.1 of a percentage point) and restaurants and hotels (1.1% and contributing 0.1 of a percentage point). 

“Final consumption expenditure by general government decreased by 0.5%, contributing -0.1 of a percentage point. This was mainly driven by decreases in purchases of goods and services and compensation of employees. 

“Gross fixed capital formation increased by 0.3%. The main positive contributors to the increase were other assets (4.4% and contributing 0.5 of a percentage point), construction works (1.4% and contributing 0.2 of a percentage point) and machinery and other equipment (0.5% and contributing 0.2 of a percentage point),” Stats SA said.   

There was a R6,6 billion drawdown of inventories (seasonally adjusted and annualised value).

Large decreases in three industries, namely manufacturing; electricity, gas and water; and mining and quarrying, contributed to the inventory drawdown. 

“Net exports contributed positively to expenditure on GDP. Exports of goods and services decreased by 3.7%, largely influenced by decreased trade in pearls, precious and semi-precious stones and precious metals; vehicles and transport equipment excluding large aircraft; chemical products; base metals and articles of base metals; and machinery and electrical equipment. 

“Imports of goods and services decreased by 3.9%, largely influenced by decreased trade in vehicles and transport equipment excluding large aircraft; mineral products; vegetable products; and base metals and articles of base metals,” Stats SA said. -SAnews.gov.za

 

nosihle
Tue, 12/03/2024 - 13:09

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