Government working to reduce electricity costs as thousands of smelter jobs at risk
Deputy Minister of Trade and Industry, Zuko Godlimpi, says the government was working to reduce electricity costs for energy-intensive industries
Image: Supplied
Deputy Minister of Trade and Industry, Zuko Godlimpi, says the government is working to reduce electricity costs for energy-intensive industries, including metal smelters, to improve competitiveness.
This comes as thousands of jobs are at risk due to the shutdown of several ferrochrome and other energy-intensive smelters across the country, a result of ongoing economic pressures and high electricity costs.
Speaking outside parliament after Finance Minister Enoch Godongwana's Medium-Term Budget Policy Statement on Wednesday, Godlimpi said the government was engaging with affected industries on possible support measures.
"The one area that we are collaborating very closely with the Ministry of Energy and Electricity in, especially for your high industrial sectors, such as smelters. So we are in discussion with those operators in that sector to look at reducing the unit price of electricity to make them more competitive, and to enable them to also invest in employment creation." Godlimpi said.
He added that the government was also exploring support measures for export-oriented sectors, including potential tax exemptions, which could be reflected in the national budget early next year.
"Then, those export sectors that are primarily affected by the tariffs, we have been discussing the possibility of a comprehensive support, including some tax exemptions that can be rolled in, but that could potentially be seen in the budget coming in February, March next year. But we are doing all that we can to assist them,".
Godlimpi noted that recent export data shows growth in agricultural products, showing the diversification of South Africa’s trade markets across Africa, the Middle East, and Europe.
"The export data that we received recently is telling a pretty different story. There was an expectation that most of our agricultural products would be decimated".
"But we have seen growth on that front, which tells you that the South African economy is very diversified. It is not as rigid as people have projected it to be, and the bulk of our exports is not concentrated in the US only".
IOL Business
mthobisi.nozulela@iol.co.za