The Economic Impact of Electricity Price Increases on ... - Eskom
The Economic Impact of Electricity Price Increases on ... - Eskom
The Economic Impact of Electricity Price Increases on ... - Eskom
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Services dominate the SA ec<strong>on</strong>omy accounting for over two-thirds <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
GDP and employment. However relatively energy-intensive primary and<br />
sec<strong>on</strong>dary industries still c<strong>on</strong>tribute around 28% <str<strong>on</strong>g>of</str<strong>on</strong>g> GDP<br />
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South African GDP by sector (2010)<br />
Pers<strong>on</strong>al services<br />
6.2%<br />
General<br />
government<br />
services<br />
15.1%<br />
Finance, real<br />
estate and<br />
business services<br />
23.5%<br />
Source: Frost and Sullivan, Rec<strong>on</strong>structed: Stats SA<br />
Pers<strong>on</strong>al services<br />
12%<br />
General<br />
government<br />
services<br />
11%<br />
Finance, real<br />
estate and<br />
business services<br />
14%<br />
Transport, storage<br />
and communicati<strong>on</strong><br />
10.2%<br />
Agriculture, forestry<br />
and fishing<br />
2.5%<br />
Mining and<br />
quarrying<br />
6.0%<br />
Manu-facturing<br />
17.2%<br />
<str<strong>on</strong>g>Electricity</str<strong>on</strong>g>, gas and<br />
water<br />
2.1%<br />
C<strong>on</strong>structi<strong>on</strong><br />
3.5%<br />
Retai, trade and<br />
hospitality<br />
13.7%<br />
Sectoral c<strong>on</strong>tributi<strong>on</strong> to total employment<br />
Transport, storage<br />
and communicati<strong>on</strong><br />
6%<br />
Source: Q3 2011, Quarterly Labour Force Survey - StatsSA<br />
(2011)<br />
Agriculture, forestry<br />
and fishing<br />
5%<br />
Mining and<br />
quarrying<br />
3%<br />
Retail trade and<br />
hospitality<br />
25%<br />
Manufacturing<br />
14%<br />
<str<strong>on</strong>g>Electricity</str<strong>on</strong>g>, gas and<br />
water<br />
1%<br />
C<strong>on</strong>structi<strong>on</strong><br />
9%<br />
Key points<br />
Current Structure<br />
<str<strong>on</strong>g>of</str<strong>on</strong>g> SA Ec<strong>on</strong>omy<br />
• <str<strong>on</strong>g>The</str<strong>on</strong>g> South African ec<strong>on</strong>omy is dominated by<br />
services-related activity – 67% <str<strong>on</strong>g>of</str<strong>on</strong>g> GDP<br />
• Of the five largest sectors <str<strong>on</strong>g>of</str<strong>on</strong>g> the ec<strong>on</strong>omy in 2010,<br />
four were services-related<br />
• It is however important to note that manufacturing<br />
remained the sec<strong>on</strong>d-largest individual sector<br />
c<strong>on</strong>tributor at 17.2% <str<strong>on</strong>g>of</str<strong>on</strong>g> GDP in 2010 and together<br />
with other relatively energy-intensive sectors<br />
(mining, electricity and other utilities, and<br />
agriculture), 28% <str<strong>on</strong>g>of</str<strong>on</strong>g> GDP.<br />
• Some sectors <str<strong>on</strong>g>of</str<strong>on</strong>g> the South African ec<strong>on</strong>omy are<br />
by nature, more labour-intensive (high<br />
employment to GDP ratios) than others.<br />
• Sectors like c<strong>on</strong>structi<strong>on</strong>, agriculture and<br />
wholesale\retail make a much larger proporti<strong>on</strong>al<br />
c<strong>on</strong>tributi<strong>on</strong> to employment than to GDP.<br />
• While sectors like finance and business services,<br />
c<strong>on</strong>tribute 23.5% <str<strong>on</strong>g>of</str<strong>on</strong>g> GDP in 2010 but accounted<br />
for <strong>on</strong>ly 14% <str<strong>on</strong>g>of</str<strong>on</strong>g> employment in 2011.<br />
Some sectors, including c<strong>on</strong>structi<strong>on</strong>, agriculture and wholesale\retail trade are important in that they make a much<br />
larger proporti<strong>on</strong>al c<strong>on</strong>tributi<strong>on</strong> to employment than to GDP<br />
©2012 Deloitte Touche Tohmatsu Limited. All rights reserved.<br />
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