Seifsa reiterates energy constraint, cost concerns
The local metals and engineering sector cannot grow as a result of South Africa’s unreliable energy supply and the fact that, on average, energy costs in the sector account for about 8% of intermediary input costs, Steel and Engineering Industries Federation of Southern Africa (Seifsa) CEO Kaizer Nyatsumba said on Wednesday.
“It is unfortunate that, even right now, the sector could not operate at full capacity as a result, among other things, of energy constraints. Actual or realised economic growth in the South African economy has fallen substantially below its potential.
“While energy provision should support our growth ambitions, there appears to be a real danger of the two gradually drifting apart,” he added in a statement.
He further noted that it was regrettable that electricity generation had become a significant physical constraint that hampered the economy’s ability to grow at a faster rate, adding that the situation ran counter to government’s stated intention to stimulate local manufacturing and value addition.
Seifsa has, on several occasions, expressed concern about the impact of the energy supply constraints on the manufacturing sector.
To highlight the manufacturing sector’s plight, the energy constraints and its impact on South Africa’s economic growth would form part of the key discussions on the first day of the upcoming two-day Southern African Metals and Engineering Indaba, on May 28 and 29, at Emperors Palace, in Ekurhuleni.
Energy Minister Tina Joemat-Pettersson, Public Enterprises Minister Lynne Brown, Eskom acting CEO Brian Molefe and Johannesburg City Power MD Sicelo Xulu would join a panel of industry stalwarts to discuss the energy challenges and possible solutions.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established on 1 March, 2000, by Barries Barnard, Advanced Fire Suppression Technologies (AFST) and the Advanced Group stands as Sub-Saharan...
VISIT SHOWROOM
Complete range of security sealing solutions including security seals bags and labels.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
