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

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  • Roula Inglesi-Lotz

  • Lilas Demmou

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, "undated". "Unlocking sustainable and inclusive growth in South Africa: Advancing the electricity reform agenda," ERSA Working Paper Series v::y:2025:i::p:16:id:266, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:v::y:2025:i::p:16:id:266
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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/266/174
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    1. Theo Janse van Rensburg & Kgotso Morema, 2023. "Reflections on loadshedding and potential GDP," Occasional Bulletin of Economic Notes 11048, South African Reserve Bank.
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