Our power struggles may be the biggest threat to economic growth, and today all eyes will be on President Cyril Ramaphosa when he answers questions in the National Assembly for the last time this year. News24 reports three of the six questions are about the R130bn struck at COP26 to accelerate our energy transition away from coal, while Eskom also features high on the agenda.
To relieve the pressure on Eskom, free the country from load shedding and spur economic growth, South Africa’s mining companies said this week they have 3,900MW of renewable energy projects worth an estimated R60bn in the pipeline, but red tape is holding back development.
We are one of the biggest emissions culprits and there is no doubt we have to make the shift to cleaner energy. But it comes at a cost that we can barely afford.
The job losses will extend into hundreds of thousands. In coal-dense provinces like Limpopo or Mpumalanga alone, 90,000 workers are at risk. And moving to nuclear energy, which arguably should be a solution of last resort, carries a price tag well into the hundreds of billions of rands.
The reality is for the economy to grow we must produce more, create more jobs, instill confidence to attract more foreign investment, and for that we need a stable, cleaner power supply.
A vicious circle for sure. Let’s hear what Ramaphosa has to say this afternoon at 14:00.
In the markets, the US Fed minutes turned out to be a non-event for the rand which stayed around the R15.90-level against the dollar. “We expect that the currency will continue to trade sideways with the US out of the market due to Thanksgiving, which will bring welcome relief to the EM markets. However, we still think that a run to R16.00 in the short term is a distinct possibility,” comments TreasuryONE. The rand is currently trading at R15.86/$.
Commodities staged a minor recovery after the Fed minutes with gold trading at $1,792, platinum at $988 and palladium at $1,892. Brent Crude is flat at $82.34 per barrel.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
South Africa set for years of power cuts as Eskom aims for profitability by 2026 – BusinessTech
Financial stability outlook has improved in past six months: Reserve Bank – SABC News
Strike looms as Sibanye’s gold wage talks deadlock over ‘insulting’ offer – Fin42
Global Business
A plot of digital land was just sold in the metaverse for $2.43 million — more than most homes in NYC and San Francisco – Business Insider
China’s Tencent told to get state approval for new apps: state media – AFP
US blacklists a dozen more Chinese tech firms citing national security – BBC News
Markets
Most Asian markets drop as data points to faster Fed taper – AFP
Love affair with riskiest assets turns turbulent on Fed fears – Bloomberg
Dollar jumps on hawkish Fed, strong consumer spending data – Reuters
Opinion/In-depth
EXCLUSIVE: Joseph Mathunjwa’s 2019 election as Amcu president set aside by Labour Court – Daily Maverick
Magnus Heystek: Regulation 28 – South African savers are being shafted – Biznews
Managing a just transition away from coal is a delicate balancing act – and Gwede Mantashe lacks balance – Daily Maverick
Video
Black Friday: How to spot a saving over a scam – eNCA
Chocolate, the billion euro industry that tastes good and does good – Euronews
India’s crypto ban plan leads to ‘heavy selling’ – Reuters
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