Existing South African reforms set to lift growth to 3.5% by 2029, coal conference hears
South Africa Presidency Project Management Office director Sikhulekile (Khule) Duma.
CAPE TOWN (miningweekly.com) – Existing economic reforms now in motion have the potential to lift South Africa’s economic growth rate to 3.5% a year by 2029, South Africa Presidency Project Management Office director Sikhulekile (Khule) Duma told the McCloskey twentieth annual Southern African Coal Conference on Thursday.
Delivering the keynote address during the opening session chaired by McCloskey OPIS senior VP John Howland, Duma outlined that independent modelling by the Bureau for Economic Research found that implementing the Phase I reforms could boost real GDP growth by 1.5% above the 2% baseline.
The largest driver of this improvement is fixed investment, which is projected to be 4% higher by 2029.
The government and business partnership report back to President Cyril Ramaphosa every six to eight weeks provides the joint strategic oversight committee to assess progress, provide direction, unblock issues and elevate opportunities across energy, logistics and crime.
Given improved energy availability and access to ports and railways, exports are projected to be significantly better, attaining the nigh-5% growth rate in 2029.
In the reform scenario, real GDP is 7.7%-higher at R399.6-billion by 2029, and investment a 22.3%-higher R196.7-billion.
Duma highlighted that headline initiatives underway through the collaborative efforts between Transnet, government, the National Logistics Crisis Committee and industry to improve the network and rolling stock availability, as well as operational efficiency, included 2024’s independent technical assessment of the Richards Bay coal line in KwaZulu-Natal leading to the start this year of multi-year public-private coal line improvement initiatives.
“Our government is committed to our energy mix and coal will continue to have a role,” Duma told the conference covered by Mining Weekly.
The Operational Breakthrough Project has a strong focus on operational efficiency and volume ramp-up, with partnerships with the private sector through the Richards Bay Coal Terminal procuring locomotive batteries and compressors for the maintenance of coal export locomotives.
“The involvement of the private sector in rail and ports is the biggest reform we’ve seen in 100 years,” Duma stated during questions time.
On the energy front, the launch of National Energy Crisis Committee 2.0 (NECOM 2.0) was bringing greater focus to the strengthening of the national electricity transmission grid along with market reform.
Targeted under NECOM 2.0 are improving the availability of existing electricity supply, accelerating private-sector investment in generation capacity, fast-tracking procurement of new power generation capacity, unleashing investment in rooftop solar, and fundamentally transforming the electricity sector to achieve long-term energy security.
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