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Unlocking sustainable and inclusive growth in South Africa: Advancing the electricity reform agenda

Author

Listed:
  • Roula Inglesi-Lotz

    (University of Pretoria)

  • Lilas Demmou

    (OECD)

Abstract

South Africa continues to face deep structural bottlenecks to growth, including weaknesses in the business environment, limited workers’ employability and access to jobs, and persistent inefficiencies in key network industries such as transport, water, and electricity. These challenges are underscored in the 2025 Economic Survey of South Africa, released in June 2025. Although notable progress has been made under Operation Vulindlela, significant obstacles remain, including within the electricity sector (OECD, 2025). Electricity is a foundational input for economic activity, central to firms’ production decisions and to the functioning of the broader economy. This note examines how restoring energy security, accelerating renewable deployment, and reforming municipal and pricing structures can stimulate growth and support a just and sustainable green transition.

Suggested Citation

  • Roula Inglesi-Lotz & Lilas Demmou, 2025. "Unlocking sustainable and inclusive growth in South Africa: Advancing the electricity reform agenda," ERSA Working Paper Series 266, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:266
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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/266/174
    File Function: First version, 2025
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    Keywords

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    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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