Browsing: KwaZulu Natal

Switching from coal to renewable energy is vital for South Africa to stabilize its power output and to create employment. The switch from coal to renewable energy is costly and many African nations are dragging their feet.

The situation is further exasperated by the fact that of recent years, many African nations have been discovering oil and many more are conducting explorations offshore. The potential of changing their economies from the sale of crude oil is far too promising to forgo.

This is a point that will be driven home at the upcoming COP27 in Egypt later this year. Africa will be looking to push the West to provide funding for the renewable energy transition. This time around, the South Africa deal stands as a concrete example that with sufficient funding, the transition is not only doable but plausible and strung with multifaceted benefits including employment.

Ramaphosa added that Africa is now taking concrete steps to write its own economic success story and the Intra-African Trade Fair is part of that story.
With Africa opening up new fields of opportunity, Ramaphosa said that seeing more of ‘made in Africa labels’ is critical if the continent is to change the distorted trade relationship that exists between African countries and the rest of the world.
He emphasised that the situation where Africa keeps exporting raw materials while importing finished goods from those materials is no longer tenable. By promoting trade in Africa, he said, “we strengthen our own industrial base and produce goods for ourselves and for each other”.

Despite the vulnerabilities to the economy from the riots and the pandemic as well as low growth of the former president’s administration, the high prices of commodities bode well for the economic outlook of the country.

A single caveat is in order here which is to ask how sustainable this economic position is.

Commodity prices are expected to remain buoyant on account of planned infrastructure spending in the US and spending and adoption of renewable energy. This will be positive for commodities going forward into the future.