South Africa: Municipal Electricity Tariffs Are Hurting the Economy

analysis

Johannesburg — South Africa's machinery and equipment industries have recently come under huge pressure. Falling demand after the 2008 financial crisis and rising energy costs have harmed the sector. These trends are concerning as the sector employs 10% of the country's total manufacturing workforce.

Our research paper analysed the structural factors facing the industries and zoomed in on the foundries. This is because foundries are a key intermediate segment of the machinery and equipment industries value chain. They have been hardest hit by rising electricity costs.

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