Dancing on the grid: Electricity crises, energy vulnerability, and manufacturing jobs in South Africa

Gideon Ndubuisi, Elvis Korku Avenyo and Rex Asiama

Energy Policy, 2025, vol. 202, issue C

Abstract: South Africa has been grappling with a persistent electricity crisis that has placed the country on an uncertain and turbulent economic trajectory. Based on a two-stage empirical approach, this paper unpacks the extent to which the country's manufacturing sector has been affected by this crisis. Notably, we first use South Africa's domestic input–output matrices to develop an index of manufacturing sub-sector energy vulnerability. The index reveals significant degree of heterogeneity across manufacturing sub-sectors, highlighting cross-sector differences in the level of exposure and susceptibility to the energy-related crises. Second, we employ the self-constructed energy vulnerability index in a flexible empirical framework to examine the effect of the electricity crisis on manufacturing sector jobs in the country. The empirical analysis results indicate that the electricity crisis is associated with significant job destruction, with this adverse effect severe for sectors with higher energy vulnerability intensity. The severity of this adverse effect holds irrespective of the nature of jobs, whether formal or informal. We discuss the implication of these findings in line with South Africa's economic recovery, resilience and development.

Keywords: Electricity crises; Energy vulnerability; Manufacturing; Jobs; South Africa (search for similar items in EconPapers)
JEL-codes: L60 O14 Q40 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:202:y:2025:i:c:s0301421525000412

DOI: 10.1016/j.enpol.2025.114534

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