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

Roula Inglesi-Lotz () and Lilas Demmou ()
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Roula Inglesi-Lotz: University of Pretoria
Lilas Demmou: OECD

No 266, ERSA Working Paper Series from Economic Research Southern Africa

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.

Keywords: Electricity reform; Energy security; Load shedding; Just energy transition; Economic growth constraints (search for similar items in EconPapers)
JEL-codes: O11 O38 Q43 Q48 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2025-11
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Published in ERSA Working Paper Series, November 2025, pages 16

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