Mail and Guardian 30 November 2012.
(Editor’s note: This is a MUST read!)
The underlying foundation of the country’s economy is that electricity has been cheap, readily available and abundant, writes Dirk de Vos.
Our economy and its industrial base is power intensive and South Africa has one of the highest power consumption-to-unit of gross domestic product ratios anywhere.
Cheap and abundant energy has, for a long time, represented our comparative advantages and shaped our economy. It has allowed South Africa to avoid addressing things such as low labour productivity. Other disadvantages, such as deep and low-grade mineral-bearing mines and the distance from our main export markets, have been offset by the price and ready availability of energy…