Carol Paton Writer at Large

The crowning achievement of President Cyril Ramaphosa’s trip to China earlier this month, according to press reports, was the clinching of a deal for China to build a 4,600MW coal-fired power station in Limpopo, a cement plant and a stainless steel and ferro-chromium plant for around $10bn. As we know, Ramaphosa is shopping for investment and will take what he gets, but even by these standards this seemed of all the options a surprising and arbitrary priority to have persuaded Africa’s most enthusiastic investor to back. First, we have an excess of electricity, which is set to grow in future; second, the world steel industry is in crisis; and, third, none of these are sectors identified by the government as potential job-rich, growth-rich places to invest. It is also worth mentioning that the above-mentioned power station (which is only a little smaller than the huge Medupi and Kusile) appears nowhere in SA’s long-awaited and much anticipated energy blueprint, the Integrated Resourc...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.