Structural reforms needed, especially in electricity generation
As well as reforms to the electricity market, the Budget Review advocates for urgent regulatory reform to the ports sector and to freight rail to be accelerated
Opening up the generation of electricity to more suppliers is the most pressing of the structural reforms that must be made to rekindle economic growth, says the Treasury.
In particular, the commitments made by President Cyril Ramaphosa in the state of the nation address (Sona) to open up electricity generation to the private sector and speed up regulatory processes must be “rapidly implemented”, according to the Budget Review. The measures should also include acquiring additional electricity from existing independent power producers (IPPs); launching a new round of procurement of renewable energy from IPPs; and allowing municipalities to procure energy directly from private suppliers...