Power constraints will continue to dampen economic growth in South Africa for some time to come. In his maiden medium term budget speech finance minister Nhlanhla Nene said “electricity supply would remain tight until the first units of the new Medupi power station came on line and the capacity of existing plants improved. “Even then, it will require several years and substantial public and private investment in power generation before a satisfactory balance between supply capacity and demand is achieved. “Stepped-up investment in distribution infrastructure is also required by municipalities, alongside investment in demand management and energy efficiency improvements by both businesses and households”.
