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

Non-ferrous metals and gold mining are the single largest consumers
<strong>of</strong> electricity in SA, responsible for 25% <strong>of</strong> total consumption, but they
make a relatively small direct contribution to GDP (about 4%).
Key points
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Deloitte
Sectoral comparison <strong>of</strong> electricity use and contribution to GDP
(2009)
Current Structure
<strong>of</strong> SA Economy
• By definition, energy-intensive sectors like gold mining, non-ferrous metals, soap and pharmaceuticals add relatively little value to
the economy (in terms <strong>of</strong> GDP) per unit <strong>of</strong> energy consumed.
• <strong>The</strong> overall contribution <strong>of</strong> these sectors to GDP however, also depends on their linkages to sectors in the economy. For example,
while the direct contribution <strong>of</strong> the mining and quarrying industry to GDP is only 6% it is linked to number <strong>of</strong> other sectors in the
economy (e.g. Engineering services, financial and business services, banking, construction, transport, manufacturing etc.) and so
its indirect contribution to GDP would be significantly higher.
Source: Reconstructed from Frost and Sullivan (2011)
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