The Economic Impact of Electricity Price Increases on ... - Eskom

Services dominate the SA economy accounting for over two-thirds <strong>of</strong>
GDP and employment. However relatively energy-intensive primary and
secondary industries still contribute around 28% <strong>of</strong> GDP
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South African GDP by sector (2010)
Personal services
6.2%
General
government
services
15.1%
Finance, real
estate and
business services
23.5%
Source: Frost and Sullivan, Reconstructed: Stats SA
Personal services
12%
General
government
services
11%
Finance, real
estate and
business services
14%
Transport, storage
and communication
10.2%
Agriculture, forestry
and fishing
2.5%
Mining and
quarrying
6.0%
Manu-facturing
17.2%
<strong>Electricity</strong>, gas and
water
2.1%
Construction
3.5%
Retai, trade and
hospitality
13.7%
Sectoral contribution to total employment
Transport, storage
and communication
6%
Source: Q3 2011, Quarterly Labour Force Survey - StatsSA
(2011)
Agriculture, forestry
and fishing
5%
Mining and
quarrying
3%
Retail trade and
hospitality
25%
Manufacturing
14%
<strong>Electricity</strong>, gas and
water
1%
Construction
9%
Key points
Current Structure
<strong>of</strong> SA Economy
• <strong>The</strong> South African economy is dominated by
services-related activity – 67% <strong>of</strong> GDP
• Of the five largest sectors <strong>of</strong> the economy in 2010,
four were services-related
• It is however important to note that manufacturing
remained the second-largest individual sector
contributor at 17.2% <strong>of</strong> GDP in 2010 and together
with other relatively energy-intensive sectors
(mining, electricity and other utilities, and
agriculture), 28% <strong>of</strong> GDP.
• Some sectors <strong>of</strong> the South African economy are
by nature, more labour-intensive (high
employment to GDP ratios) than others.
• Sectors like construction, agriculture and
wholesale\retail make a much larger proportional
contribution to employment than to GDP.
• While sectors like finance and business services,
contribute 23.5% <strong>of</strong> GDP in 2010 but accounted
for only 14% <strong>of</strong> employment in 2011.
Some sectors, including construction, agriculture and wholesale\retail trade are important in that they make a much
larger proportional contribution to employment than to GDP
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