CAPE TOWN – Despite strides in structural reforms, South Africa’s economic expansion is still hindered by persistent load shedding and inefficiencies in freight rail, according to Finance Minister Enoch Godongwana. The minister addressed these challenges during the Budget Speech at Cape Town City Hall, emphasizing the government’s commitment to overcoming these barriers to growth.
According to South African Government News Agency, the government has made commendable progress in implementing reforms across various sectors, including electricity, logistics, water, telecommunications, and visa policies. However, the ongoing issue of rolling power cuts and freight rail challenges necessitates further action. Efforts to reform the electricity sector aim to ensure long-term energy security, with investments in renewable energy being a key focus. The budget proposes increasing the limit for renewable energy projects eligible for carbon offsets from 15 to 30 megawatts, signaling a push towards cleaner energy sources. Moreover, the imminent release of a report reviewing Eskom’s coal-fired power stations is expected to guide improvements in accountability and operational efficiency, contributing to reduced load shedding and enhanced energy reliability.
On the logistics front, the introduction of third-party access to the freight rail network by May 2024 and partnerships to upgrade key port infrastructure are among the measures designed to boost operational efficiency and encourage private investment. A R47 billion guarantee provided to Transnet aims to facilitate the entity’s recovery and adherence to performance conditions, reflecting a broader strategy to enhance the sustainability of South Africa’s logistics sector.